NATIONALUM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.4

📊 Chart Patterns: NATIONALUM is trading at 279 ₹, very close to its 52-week high (283 ₹). The chart shows strong bullish momentum with consistent higher highs and higher lows.

📈 Moving Averages: Current price is well above both DMA 50 (252 ₹) and DMA 200 (216 ₹), confirming a strong uptrend.

📉 RSI: At 68.6, RSI is approaching overbought territory, suggesting caution for new entries but still supportive of bullish momentum.

📈 MACD: Positive (7.94), showing strong bullish crossover and continuation of upward momentum.

📊 Bollinger Bands: Price is near the upper band, indicating strength but also potential short-term resistance.

📊 Volume Trends: Current volume (88.9 lakh) is slightly above average weekly volume (86.3 lakh), showing strong participation and buying interest.

📍 Momentum Signals: Short-term momentum is bullish with potential continuation, though RSI suggests possible near-term consolidation.

🎯 Entry Zone: 265–272 ₹ (near support and DMA 50). Good accumulation zone for traders.

🎯 Exit Zone: 280–285 ₹ (near 52-week high resistance). Profit booking advised around 283 ₹.

🔎 Trend Status: The stock is trending upward strongly, with minor consolidation possible near resistance.

Positive

• Strong ROCE (43.7%) and ROE (32.6%) indicate excellent efficiency.
• Zero debt-to-equity ratio ensures financial stability.
• Dividend yield of 3.76% provides attractive returns.
• Valuation attractive: P/E (8.38) well below industry average (20.6).
• FII holdings increased (+1.16%).
• Quarterly PAT surged (+34.9%).

Limitation

• RSI near overbought levels (68.6), suggesting caution for new entries.
• DII holdings declined (-0.31%).
• Price near 52-week high may face resistance.

Company Negative News

• DII holdings decreased (-0.31%).
• Stock may face profit booking near 283 ₹ resistance.

Company Positive News

• Quarterly PAT improved significantly (1,433 Cr. vs 1,064 Cr.).
• FII holdings increased (+1.16%).
• Dividend yield of 3.76% supports investor confidence.

Industry

• Industry PE is 20.6, higher than NATIONALUM’s 8.38, suggesting undervaluation.
• Metals and mining sector remains cyclical but supported by infrastructure and industrial demand.

Conclusion

✅ NATIONALUM is in a strong bullish trend, trading near its 52-week high with robust fundamentals. Efficiency metrics, zero debt, and attractive dividend yield strengthen investor confidence. Traders may enter near 265–272 ₹ and exit around 280–285 ₹. Long-term investors can hold for continued strength, but should monitor RSI levels and resistance near 283 ₹.