NBCC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.6

📉 Chart Patterns & Trend: NBCC is trading at ₹114, slightly above its 50 DMA (₹112) and 200 DMA (₹108). This indicates a short-term consolidation phase with mild bullish undertone, though the stock is facing resistance near its recent high of ₹131.

📊 Moving Averages: Price above both short- and long-term averages confirms underlying strength. Key support lies near ₹110–₹112, while resistance is around ₹125–₹131.

📉 RSI: At 43.0, RSI is neutral-to-weak, suggesting limited upside momentum and possible sideways consolidation.

📉 MACD: Slightly negative MACD (-1.12) signals weakening momentum, hinting at caution near resistance levels.

📉 Bollinger Bands: Price is near the mid-band, indicating consolidation. A breakout above ₹120–₹125 could trigger bullish momentum toward ₹131.

📊 Volume Trends: Current volume (1.05 Cr.) is below the weekly average (1.68 Cr.), showing reduced participation. Stronger volume is needed to confirm breakout strength.

🎯 Entry Zone: ₹110–₹114 (near support)

🚪 Exit Zone: ₹125–₹131 (near resistance/high)

Positive

• Strong ROCE (32.1%) and ROE (24.1%) reflect excellent efficiency and profitability.
• Debt-free balance sheet (Debt-to-equity 0.00) ensures financial stability.
• Quarterly PAT improved from ₹114 Cr. to ₹173 Cr. (+39.5%).
• FII holding increased (+0.35%), showing foreign investor confidence.

Limitation

• Stock trading near resistance levels indicates limited upside potential in the short term.
• High P/E (49.3) compared to industry PE (18.8) suggests overvaluation.
• DII holding decreased (-0.26%), showing reduced domestic institutional confidence.
• PEG ratio of 1.79 highlights expensive valuation relative to growth.

Company Negative News

• Weak momentum indicators (RSI neutral, MACD negative) suggest limited upside in near term.
• Reduced domestic institutional participation adds pressure on sentiment.

Company Positive News

• Strong quarterly profit growth supports earnings momentum.
• Foreign institutional investors increased stake, showing confidence in long-term prospects.
• Debt-free operations provide long-term resilience.

Industry

• Industry PE at 18.8 is much lower than NBCC’s PE (49.3), suggesting premium valuation.
• Construction and infrastructure sector benefits from government contracts and urban development projects.

Conclusion

📌 NBCC is in a consolidation phase, trading above key moving averages but with weak RSI and negative MACD. Entry near ₹110–₹114 offers favorable risk-reward, while resistance at ₹125–₹131 provides exit targets. Strong fundamentals and profitability support long-term growth, though high valuation and weak momentum warrant cautious optimism in the near term.