NATIONALUM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Html

Copy

Technical Rating: 4.4

Technical Analysis Summary

• Trend: Trending upward with strong momentum
• Moving Averages: Price (₹234) is above both DMA 50 (₹217) and DMA 200 (₹198), confirming bullish alignment
• RSI (63.9): Bullish zone, approaching overbought territory
• MACD (6.76): Strong bullish crossover, supporting continued upside
• Bollinger Bands: Price near upper band, indicating strength but potential short-term resistance
• Volume: Above average (93.5L vs 89.0L), showing active participation

Entry & Exit Zones

• Support: ₹220 – ₹225 (recent base and near DMA 50)
• Resistance: ₹250 – ₹263 (recent swing highs and 52-week high)
• Optimal Entry: ₹225 – ₹230 on pullback with MACD support
• Exit Zone: ₹250 – ₹263 if price stalls near resistance

Positive

• Strong ROCE (43.7%) and ROE (32.6%) indicate excellent operational efficiency
• Low P/E of 7.42 vs industry average of 19.8
• EPS of ₹31.5 and attractive dividend yield of 4.48%
• Positive FII sentiment (+1.16%) and PEG ratio of 0.34 suggests undervaluation

Limitation

• RSI nearing overbought zone may trigger short-term correction
• Quarterly PAT decline from ₹2,078 Cr. to ₹1,064 Cr.
• Negative DII sentiment (-0.31%)

Company Negative News

• Concerns over global aluminum price volatility and export headwinds

Company Positive News

• Strong domestic demand and infrastructure push supporting volume growth
• Operational efficiency and low debt-to-equity ratio (0.01) enhance financial stability

Industry

• NATIONALUM operates in the aluminum production and mining sector
• Peers include Hindalco, Vedanta, and Nalco

Conclusion

NATIONALUM is currently trending upward with strong technical indicators and solid fundamentals. While short-term caution is warranted due to RSI levels and profit decline, valuation and momentum favor a bullish outlook. Traders may consider entry near ₹225 with targets around ₹263, watching for volume and MACD confirmation.