NBCC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | NBCC | Market Cap | 23,870 Cr. | Current Price | 88.4 ₹ | High / Low | 131 ₹ |
| Stock P/E | 37.9 | Book Value | 9.34 ₹ | Dividend Yield | 0.76 % | ROCE | 32.1 % |
| ROE | 24.1 % | Face Value | 1.00 ₹ | DMA 50 | 96.0 ₹ | DMA 200 | 104 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | 1.28 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 173 Cr. |
| RSI | 44.4 | MACD | -3.93 | Volume | 2,03,75,261 | Avg Vol 1Wk | 1,27,40,781 |
| Low price | 75.0 ₹ | High price | 131 ₹ | PEG Ratio | 1.37 | Debt to equity | 0.00 |
| 52w Index | 24.1 % | Qtr Profit Var | 4.89 % | EPS | 2.30 ₹ | Industry PE | 15.2 |
📉 Chart & Trend: NBCC is trading at ₹88.4, below both 50 DMA (₹96.0) and 200 DMA (₹104), confirming a bearish setup. RSI at 44.4 shows weak momentum but not oversold. MACD at -3.93 indicates negative crossover. Bollinger Bands suggest price is near the lower band, reflecting weakness with limited rebound potential.
📊 Volume: Current volume (2.03 Cr) is significantly higher than the 1-week average (1.27 Cr), showing strong selling pressure but also possible accumulation at lower levels.
📈 Momentum Signals: Short-term momentum remains negative. Support levels are seen at ₹85–₹86 and strong support at ₹75. Resistance lies at ₹96 (50 DMA) and ₹104 (200 DMA).
🎯 Entry Zone: ₹85–₹86 (risk-managed entry zone).
🚪 Exit Zone: ₹95–₹104 (profit-taking zone near resistance).
🔎 Trend Status: Bearish consolidation. The stock is consolidating below key moving averages, with weak momentum and selling pressure dominating.
Positive
- Strong ROCE (32.1%) and ROE (24.1%) show efficient capital use.
- Debt-free balance sheet (Debt-to-equity 0.00) ensures financial stability.
- DII holding increased by 1.28%, reflecting domestic institutional support.
Limitation
- High P/E (37.9) compared to industry average (15.2) indicates overvaluation.
- Price trading below both 50 DMA and 200 DMA reflects technical weakness.
- Book value at ₹9.34 is low relative to current price, limiting margin of safety.
Company Negative News
- PAT declined from ₹173 Cr to ₹135 Cr, showing earnings pressure.
- FII holding reduced by -0.14%, reflecting weaker foreign investor sentiment.
Company Positive News
- EPS at ₹2.30 remains stable despite profit decline.
- DII inflows show confidence in long-term fundamentals.
Industry
- Industry PE at 15.2 highlights sector valuations are much lower than the company’s, suggesting relative overvaluation.
- Construction and infrastructure sector is cyclical, sensitive to government spending and project execution.
Conclusion
⚠️ NBCC is in a bearish consolidation phase, trading below key moving averages with weak RSI and negative MACD. Fundamentals show strong efficiency and debt-free status, but stretched valuations and declining profits limit upside. Short-term traders may consider entries near ₹85–₹86 with exits around ₹95–₹104, while long-term investors should wait for valuation correction and earnings stability before fresh accumulation.
Would you like me to extend this into a sector benchmarking overlay against other infrastructure and construction companies? That would highlight whether NBCC’s weakness is sector-driven or company-specific.