NCC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.2

📊 Chart Patterns: NCC is trading close to its 52-week low (152 ₹) and far below its high (301 ₹). The chart shows a clear downtrend with weak recovery attempts.

📈 Moving Averages: Current price (156 ₹) is below both DMA 50 (182 ₹) and DMA 200 (211 ₹), confirming bearish momentum.

📉 RSI: Extremely oversold at 15.6, suggesting potential for a short-term rebound but overall weakness.

📉 MACD: Negative (-8.81), reinforcing bearish sentiment and lack of bullish crossover signals.

📊 Bollinger Bands: Price likely near the lower band, indicating oversold conditions and possible volatility squeeze.

📊 Volume Trends: Current volume (28.9 lakh) is slightly below average weekly volume (31.1 lakh), showing reduced participation and weak buying interest.

📍 Momentum Signals: Short-term momentum is bearish. Oversold RSI may trigger a technical bounce, but trend remains weak.

🎯 Entry Zone: 152–158 ₹ (near strong support). Suitable only for short-term rebound trades.

🎯 Exit Zone: 175–182 ₹ (near 50 DMA resistance). Strong resistance at 182 ₹; profit booking advised here.

🔎 Trend Status: The stock is reversing downward from highs and currently in a bearish phase with possible consolidation near support.

Positive

• Strong ROCE (20.1%) and decent ROE (10.7%).
• Low debt-to-equity ratio (0.28) ensures financial stability.
• Valuation attractive: P/E (13.7) below industry average (18.8).
• PEG ratio of 0.51 suggests undervaluation relative to growth.

Limitation

• Quarterly profit dropped sharply (-37.1%).
• Price trading below both 50 DMA and 200 DMA.
• Weak RSI and MACD confirm lack of momentum.
• Decline in DII holdings (-0.85%).

Company Negative News

• Quarterly PAT fell from 190 Cr. to 101 Cr.
• Stock price corrected heavily from 301 ₹ to 156 ₹.

Company Positive News

• FII holdings increased slightly (+0.17%).
• Dividend yield of 1.45% provides steady returns.

Industry

• Industry P/E is 18.8, higher than NCC’s 13.7, suggesting undervaluation.
• Construction sector remains cyclical but supported by infrastructure push in India.

Conclusion

⚠️ NCC is in a bearish trend, trading near support with oversold RSI. Fundamentals show stability and undervaluation, but weak technicals and declining profits limit upside potential. Short-term traders may attempt rebound trades near 152–158 ₹ with exits around 175–182 ₹. Long-term investors should wait for confirmation of reversal above 200 DMA.