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NBCC - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 24 May 26, 10:27 pm

Technical Rating: 3.9

Stock Code NBCC Market Cap 25,596 Cr. Current Price 94.8 ₹ High / Low 131 ₹
Stock P/E 40.7 Book Value 9.34 ₹ Dividend Yield 0.71 % ROCE 32.1 %
ROE 24.1 % Face Value 1.00 ₹ DMA 50 92.9 ₹ DMA 200 99.4 ₹
Chg in FII Hold -0.21 % Chg in DII Hold -1.50 % PAT Qtr 135 Cr. PAT Prev Qtr 173 Cr.
RSI 54.2 MACD 0.74 Volume 1,17,56,092 Avg Vol 1Wk 80,91,663
Low price 77.2 ₹ High price 131 ₹ PEG Ratio 1.47 Debt to equity 0.00
52w Index 32.9 % Qtr Profit Var 4.89 % EPS 2.30 ₹ Industry PE 17.6

📈 Chart & Trend: NBCC is trading at 94.8 ₹, slightly above its 50 DMA (92.9 ₹) but below its 200 DMA (99.4 ₹), indicating mild short-term strength but long-term weakness. Support lies at 92–93 ₹, with resistance around 98–100 ₹.

🔎 Momentum Signals: RSI at 54.2 suggests neutral momentum leaning bullish. MACD at 0.74 shows a weak positive crossover. Entry zone: 92–93 ₹. Exit zone: 98–100 ₹.

📊 Volume Trends: Current volume (1.17 Cr.) is significantly above the 1-week average (80.9 Lakh), reflecting strong participation and short-term interest.

📉 Bollinger Bands: Bands are moderately wide, suggesting volatility expansion and potential breakout attempts.

📌 Trend Status: The stock is consolidating with mild bullish bias but facing resistance near 100 ₹.

Positive

  • Strong ROCE (32.1%) and ROE (24.1%) highlight efficient capital use.
  • Debt-free balance sheet (0.00 debt-to-equity) ensures financial stability.
  • EPS of 2.30 ₹ supports profitability.
  • Trading above 50 DMA signals short-term strength.

Limitation

  • High P/E (40.7) compared to industry average (17.6) indicates overvaluation.
  • Stock trading below 200 DMA reflects long-term weakness.
  • Quarterly PAT declined (135 Cr. vs 173 Cr.), showing earnings pressure.
  • PEG ratio of 1.47 suggests moderate valuation risk.

Company Negative News

  • Decline in FII holding (-0.21%) and DII holding (-1.50%) shows reduced institutional confidence.

Company Positive News

  • Quarterly profit variation (+4.89%) indicates slight improvement despite decline in absolute PAT.
  • Strong trading volumes reflect renewed investor interest.

Industry

  • Industry PE at 17.6 suggests sector is moderately valued compared to NBCC’s premium valuation.
  • Construction and infrastructure sector showing steady demand but margin pressures remain.

Conclusion

NBCC is consolidating with mild bullish bias, supported by strong volumes and short-term strength above 50 DMA. However, overvaluation, declining institutional holdings, and earnings pressure limit upside potential. Best suited for cautious entry near 92–93 ₹ with profit booking around 98–100 ₹.

NBCC is currently in a consolidating phase with short-term bullish bias. To deepen the view, I can extend this into a peer benchmarking analysis or a sector overlay comparison to highlight its position against other infrastructure peers.

Technical Analysis
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