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NIACL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 19 Mar 26, 09:02 pm

Technical Rating: 3.4

Stock Code NIACL Market Cap 22,181 Cr. Current Price 134 ₹ High / Low 215 ₹
Stock P/E 18.9 Book Value 169 ₹ Dividend Yield 1.34 % ROCE 3.72 %
ROE 3.54 % Face Value 5.00 ₹ DMA 50 147 ₹ DMA 200 167 ₹
Chg in FII Hold -0.01 % Chg in DII Hold -0.03 % PAT Qtr 372 Cr. PAT Prev Qtr 63.2 Cr.
RSI 35.9 MACD -4.44 Volume 7,66,126 Avg Vol 1Wk 4,90,178
Low price 131 ₹ High price 215 ₹ PEG Ratio 0.24 Debt to equity 0.00
52w Index 4.58 % Qtr Profit Var 5.13 % EPS 7.11 ₹ Industry PE 33.4

📊 Technical Analysis

  • Chart Patterns: Stock is trading below both 50 DMA (₹147) and 200 DMA (₹167), showing weakness. Support at ₹131, resistance around ₹147–₹167.
  • Moving Averages: Current price (₹134) is below key averages, confirming bearish bias.
  • RSI: 35.9 — oversold zone, suggesting potential short-term bounce.
  • MACD: -4.44 — bearish crossover, momentum still negative.
  • Bollinger Bands: Price near lower band, indicating oversold conditions.
  • Volume Trends: Current volume (7.66L) above 1-week average (4.90L), showing increased selling pressure.

📈 Momentum & Signals

  • Short-term Momentum: Weak, but oversold RSI hints at possible rebound.
  • Entry Zone: ₹131–₹135 (near support, risk-managed).
  • Exit Zone: ₹147–₹167 (first resistance), ₹180 (next resistance).
  • Trend Status: Downtrend with consolidation attempts; reversal only above ₹147.

✅ Positive

  • Book value at ₹169 provides valuation cushion.
  • Dividend yield of 1.34% offers investor incentive.
  • PAT improved significantly (₹372 Cr vs ₹63.2 Cr), showing operational recovery.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA, bearish technical setup.
  • Low ROE (3.54%) and ROCE (3.72%) reflect weak efficiency.
  • FII and DII holdings slightly reduced, showing cautious sentiment.

📰 Company Negative News

  • Stock corrected sharply from 52-week high of ₹215 to current ₹134.
  • Weak return ratios compared to industry peers.

🌟 Company Positive News

  • Quarterly PAT surged to ₹372 Cr, a strong improvement.
  • EPS at ₹7.11 reflects profitability despite weak efficiency ratios.
  • PEG ratio at 0.24 suggests undervaluation relative to growth.

🏭 Industry

  • Industry PE at 33.4, higher than company PE (18.9), indicating NIACL trades at a discount.
  • Insurance sector remains resilient with long-term growth potential.

🔎 Conclusion

  • NIACL is in a downtrend but oversold RSI suggests short-term bounce potential.
  • Short-term traders may consider entry near ₹131–₹135 with exit around ₹147–₹167.
  • Long-term investors should be cautious due to weak efficiency ratios, despite improving profitability and attractive valuation.

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