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NHPC - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 3.6

Stock Code NHPC Market Cap 83,575 Cr. Current Price 83.2 ₹ High / Low 92.3 ₹
Stock P/E 26.2 Book Value 39.6 ₹ Dividend Yield 2.30 % ROCE 7.44 %
ROE 8.40 % Face Value 10.0 ₹ DMA 50 78.8 ₹ DMA 200 80.0 ₹
Chg in FII Hold -0.05 % Chg in DII Hold 0.47 % PAT Qtr 293 Cr. PAT Prev Qtr 926 Cr.
RSI 60.9 MACD 2.00 Volume 1,58,66,856 Avg Vol 1Wk 2,34,07,647
Low price 68.7 ₹ High price 92.3 ₹ PEG Ratio -4.08 Debt to equity 0.99
52w Index 61.4 % Qtr Profit Var 7.04 % EPS 3.17 ₹ Industry PE 31.0

📈 Chart & Trend: NHPC is trading above its 50 DMA (78.8 ₹) and 200 DMA (80.0 ₹), showing short-term strength but limited momentum. RSI at 60.9 indicates mildly overbought conditions, while MACD at 2.00 reflects a weak bullish crossover. Bollinger Bands are moderately tight, suggesting consolidation with limited volatility.

🔎 Momentum Signals: Short-term momentum is mildly positive but capped by resistance. Strong support lies at 81–82 ₹, while resistance is seen at 86–88 ₹. Entry zone: 81–83 ₹. Exit zone: 86–88 ₹.

📊 Volume Trends: Current volume (1.58 Cr.) is below the 1-week average (2.34 Cr.), indicating reduced participation and consolidation pressure.

Positive

  • Dividend yield of 2.30% provides steady shareholder returns.
  • Stock trading above both 50 DMA and 200 DMA signals short-term strength.
  • DII holdings increased (+0.47%), showing domestic institutional support.

Limitation

  • Weak ROCE (7.44%) and ROE (8.40%) compared to peers.
  • Quarterly PAT dropped sharply (293 Cr. vs 926 Cr.), raising earnings concerns.
  • PEG ratio (-4.08) indicates poor growth prospects relative to valuation.

Company Negative News

  • Decline in FII holdings (-0.05%) reflects reduced foreign investor confidence.
  • Sharp fall in quarterly profits signals operational weakness.

Company Positive News

  • DII inflows (+0.47%) highlight domestic institutional support.
  • Quarterly profit variation (+7.04%) shows marginal improvement despite weak base.

Industry

  • Industry PE at 31.0 indicates sector is moderately valued compared to NHPC’s lower P/E (26.2).
  • Power sector continues to benefit from government-led infrastructure and renewable energy focus.

Conclusion

NHPC is consolidating with mild bullish signals but faces fundamental challenges due to weak profitability and low efficiency ratios. Strong dividend yield and DII support provide stability, yet overvaluation relative to growth limits upside. Best suited for cautious accumulation near 81–83 ₹ with profit booking around 86–88 ₹.

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