NBCC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | NBCC | Market Cap | 25,758 Cr. | Current Price | 95.4 ₹ | High / Low | 131 ₹ |
| Stock P/E | 41.3 | Book Value | 9.34 ₹ | Dividend Yield | 0.70 % | ROCE | 32.1 % |
| ROE | 24.1 % | Face Value | 1.00 ₹ | DMA 50 | 108 ₹ | DMA 200 | 108 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | 1.28 % | PAT Qtr | 173 Cr. | PAT Prev Qtr | 114 Cr. |
| RSI | 30.8 | MACD | -4.68 | Volume | 1,50,93,923 | Avg Vol 1Wk | 1,26,59,536 |
| Low price | 70.8 ₹ | High price | 131 ₹ | PEG Ratio | 1.50 | Debt to equity | 0.00 |
| 52w Index | 41.0 % | Qtr Profit Var | 39.5 % | EPS | 2.05 ₹ | Industry PE | 16.9 |
📊 Chart & Trend Analysis:
NBCC is trading at ₹95.4, below both its 50 DMA (₹108) and 200 DMA (₹108), indicating short-term weakness. RSI at 30.8 suggests the stock is oversold, hinting at a potential rebound. MACD at -4.68 confirms bearish momentum. Bollinger Bands show price near the lower band, reflecting selling pressure. Current volume (1.50 Cr.) is higher than the 1-week average (1.26 Cr.), suggesting active participation during the decline.
📈 Momentum Signals:
- RSI oversold, potential for short-term bounce.
- MACD negative crossover confirms bearish bias.
- Price below both 50 & 200 DMA indicates weakness.
- High volume suggests strong activity, possibly profit booking.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹92 – ₹95 (near support, oversold RSI).
- Exit Zone: ₹108 – ₹112 (resistance at 50 & 200 DMA).
- Stop Loss: ₹88 (below key support).
📌 Trend Status: The stock is consolidating with bearish bias, holding above long-term support but failing to break resistance levels.
Positive
- Strong ROCE (32.1%) and ROE (24.1%) highlight efficient capital use.
- Debt-free balance sheet (Debt-to-equity: 0.00) ensures financial stability.
- Quarterly PAT improved to ₹173 Cr. from ₹114 Cr., showing earnings growth.
- DII holding increased (+1.28%), reflecting domestic institutional support.
Limitation
- High P/E (41.3) compared to industry average (16.9) suggests overvaluation.
- Stock trading below both 50 DMA and 200 DMA reflects weak technical strength.
- EPS of ₹2.05 is relatively low compared to valuation.
Company Negative News
- FII holding decreased (-0.14%), showing reduced foreign investor confidence.
- High valuation may limit upside in the near term.
Company Positive News
- Quarterly profit growth of 39.5% signals operational improvement.
- DII support increased, showing confidence from domestic institutions.
Industry
- Industry P/E at 16.9 is significantly lower, making peers more attractive on valuation.
- Construction and infrastructure sector remains cyclical, influenced by government projects and capital expenditure trends.
Conclusion
⚖️ NBCC is consolidating with bearish bias, trading below key moving averages and showing weak momentum. While fundamentals remain strong with debt-free status and improving profits, valuations are stretched compared to industry peers. Short-term traders may consider entry near ₹92–₹95 with exits around ₹108–₹112, while long-term investors should wait for earnings consistency and better valuation alignment before fresh accumulation.