NCC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | NCC | Market Cap | 9,153 Cr. | Current Price | 146 ₹ | High / Low | 248 ₹ |
| Stock P/E | 12.7 | Book Value | 121 ₹ | Dividend Yield | 1.51 % | ROCE | 20.1 % |
| ROE | 10.7 % | Face Value | 2.00 ₹ | DMA 50 | 160 ₹ | DMA 200 | 196 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | -1.35 % | PAT Qtr | 101 Cr. | PAT Prev Qtr | 190 Cr. |
| RSI | 41.6 | MACD | -4.49 | Volume | 38,86,469 | Avg Vol 1Wk | 29,58,073 |
| Low price | 138 ₹ | High price | 248 ₹ | PEG Ratio | 0.47 | Debt to equity | 0.28 |
| 52w Index | 6.96 % | Qtr Profit Var | -37.1 % | EPS | 11.0 ₹ | Industry PE | 16.9 |
📊 Chart & Trend Analysis:
NCC is trading at ₹146, below both its 50 DMA (₹160) and 200 DMA (₹196), indicating sustained weakness. RSI at 41.6 suggests neutral-to-weak momentum, not yet oversold. MACD at -4.49 confirms bearish crossover. Bollinger Bands show price near the lower band, reflecting selling pressure. Current volume (38.8 lakh) is higher than the 1-week average (29.6 lakh), suggesting active participation during the decline.
📈 Momentum Signals:
- RSI neutral, leaning bearish.
- MACD negative crossover confirms weakness.
- Price below both 50 & 200 DMA indicates bearish trend continuation.
- Higher volume suggests strong activity, possibly profit booking.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹140 – ₹145 (near support, close to oversold levels).
- Exit Zone: ₹160 – ₹165 (resistance at 50 DMA).
- Stop Loss: ₹135 (below key support).
📌 Trend Status: The stock is reversing downward from recent highs, showing bearish bias and failing to sustain above resistance levels.
Positive
- Strong ROCE (20.1%) highlights efficient capital use.
- Dividend yield of 1.51% provides steady income.
- PEG ratio of 0.47 indicates attractive valuation relative to growth.
- Debt-to-equity ratio of 0.28 reflects manageable leverage.
Limitation
- Stock trading below both 50 DMA and 200 DMA reflects weak technical strength.
- ROE (10.7%) is modest compared to peers.
- 52-week index at 6.96% shows poor performance relative to highs.
Company Negative News
- Quarterly profit declined from ₹190 Cr. to ₹101 Cr., showing earnings pressure (-37.1%).
- FII holding decreased (-1.38%), signaling reduced foreign investor confidence.
- DII holding decreased (-1.35%), showing reduced domestic institutional support.
Company Positive News
- EPS of ₹11.0 reflects consistent earnings base.
- Valuation remains attractive compared to industry peers (P/E 12.7 vs industry 16.9).
Industry
- Industry P/E at 16.9 is higher than NCC’s P/E (12.7), suggesting undervaluation.
- Construction and infrastructure sector remains cyclical, influenced by government spending and project execution.
Conclusion
⚖️ NCC is reversing downward with bearish bias, trading below key moving averages and showing weak momentum. While fundamentals like low debt and attractive valuation provide support, earnings decline and reduced institutional holdings weigh on sentiment. Short-term traders may consider entry near ₹140–₹145 with exits around ₹160–₹165, while long-term investors should wait for earnings recovery and stronger institutional support before fresh accumulation.