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NAVA - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 3.7

Stock Code NAVA Market Cap 18,730 Cr. Current Price 662 ₹ High / Low 737 ₹
Stock P/E 35.2 Book Value 132 ₹ Dividend Yield 1.21 % ROCE 13.6 %
ROE 10.9 % Face Value 1.00 ₹ DMA 50 607 ₹ DMA 200 575 ₹
Chg in FII Hold 0.25 % Chg in DII Hold 0.14 % PAT Qtr 136 Cr. PAT Prev Qtr 157 Cr.
RSI 60.0 MACD 27.3 Volume 3,47,484 Avg Vol 1Wk 4,14,012
Low price 416 ₹ High price 737 ₹ PEG Ratio -90.4 Debt to equity 0.00
52w Index 76.6 % Qtr Profit Var 169 % EPS 18.7 ₹ Industry PE 31.0

📈 Chart & Trend: NAVA is trading above both its 50 DMA (607 ₹) and 200 DMA (575 ₹), confirming short-term bullish strength. RSI at 60.0 indicates mildly overbought conditions, while MACD at 27.3 shows a strong bullish crossover. Bollinger Bands are moderately expanded, suggesting active volatility and continuation of trend. The stock is trending upward but showing signs of consolidation near resistance.

🔎 Momentum Signals: Short-term momentum remains positive with price holding above support. Strong support lies at 650–655 ₹, while resistance is seen at 700–720 ₹. Entry zone: 650–660 ₹. Exit zone: 700–720 ₹.

📊 Volume Trends: Current volume (3.47 lakh) is below the 1-week average (4.14 lakh), indicating reduced participation and possible consolidation despite bullish signals.

Positive

  • Debt-free balance sheet (0.00 debt-to-equity) ensures financial stability.
  • EPS of 18.7 ₹ supports earnings visibility.
  • FII (+0.25%) and DII (+0.14%) holdings increased, showing institutional confidence.
  • Stock trading above both 50 DMA and 200 DMA indicates momentum strength.

Limitation

  • High P/E (35.2) compared to industry average (31.0) suggests overvaluation.
  • Modest ROCE (13.6%) and ROE (10.9%) limit efficiency.
  • Quarterly PAT declined (136 Cr. vs 157 Cr.), showing earnings weakness.
  • PEG ratio (−90.4) signals distorted growth valuation.

Company Negative News

  • Recent quarterly profit decline raises concerns about growth momentum.

Company Positive News

  • Debt-free structure provides financial resilience.
  • Institutional investors increased holdings, reflecting confidence.

Industry

  • Industry P/E at 31.0 suggests peers are valued slightly lower.
  • Diversified industrial sector remains cyclical, tied to demand and commodity prices.

Conclusion

⚖️ NAVA is trending upward with short-term bullish signals supported by debt-free balance sheet and institutional inflows. Entry near 650–660 ₹ offers favorable risk-reward, while resistance lies at 700–720 ₹. High valuation and declining profits warrant caution, making it suitable for swing trades with disciplined exit strategies.

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