NIACL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | NIACL | Market Cap | 24,504 Cr. | Current Price | 148 ₹ | High / Low | 215 ₹ |
| Stock P/E | 20.9 | Book Value | 0.00 ₹ | Dividend Yield | 1.21 % | ROCE | 3.72 % |
| ROE | 3.54 % | Face Value | 5.00 ₹ | DMA 50 | 157 ₹ | DMA 200 | 175 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.03 % | PAT Qtr | 372 Cr. | PAT Prev Qtr | 63.2 Cr. |
| RSI | 44.5 | MACD | -3.16 | Volume | 5,98,517 | Avg Vol 1Wk | 3,56,210 |
| Low price | 135 ₹ | High price | 215 ₹ | PEG Ratio | 0.26 | 52w Index | 16.8 % |
| Qtr Profit Var | 5.13 % | EPS | 7.11 ₹ | Industry PE | 33.2 |
📊 Chart Patterns: NIACL is trading at 148 ₹, below both 50 DMA (157 ₹) and 200 DMA (175 ₹). The price is closer to its 52-week low (135 ₹) than its high (215 ₹), reflecting weakness and limited upward momentum.
📈 Moving Averages: Current price is under both short-term and long-term averages, confirming bearish sentiment. The 50 DMA is also below the 200 DMA, indicating a prolonged downtrend.
📉 RSI: At 44.5, RSI suggests neutral-to-weak momentum, leaning towards oversold but not yet at reversal levels.
📉 MACD: Negative at -3.16, showing bearish divergence and lack of strong buying signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential short-term support.
📊 Volume Trends: Current volume (5.9 lakh) is higher than average weekly volume (3.5 lakh), suggesting increased activity, possibly due to selling pressure.
📌 Momentum Signals: Short-term momentum remains weak. Support lies around 135–140 ₹, while resistance is near 155–160 ₹.
🎯 Entry Zone: 140–145 ₹ (near support, only for short-term traders with strict stop-loss).
🎯 Exit Zone: 155–160 ₹ (near 50 DMA resistance).
🔎 Trend Status: The stock is consolidating with bearish bias, not yet showing reversal signals.
Positive
- EPS of 7.11 ₹ indicates profitability.
- Dividend yield of 1.21% provides shareholder returns.
- Quarterly PAT improved significantly from 63.2 Cr. to 372 Cr.
- PEG ratio of 0.26 suggests reasonable valuation relative to growth.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
- Book value reported as 0.00 ₹ raises concerns about asset backing.
- Low ROCE (3.72%) and ROE (3.54%) reflect poor efficiency.
- 52-week performance index at 16.8% indicates underperformance.
Company Negative News
- FII holdings decreased by -0.01% and DII holdings by -0.03%, showing reduced institutional confidence.
- Stock price corrected sharply from 215 ₹ high to current levels.
Company Positive News
- Quarterly PAT surged, showing operational improvement.
- Dividend payout continues, enhancing shareholder value.
Industry
- Industry PE at 33.2 suggests sector trades at higher valuations compared to NIACL’s P/E of 20.9.
- Insurance sector remains stable with long-term growth potential.
Conclusion
⚠️ NIACL is consolidating with a bearish bias, trading below key moving averages and showing weak momentum. Short-term traders may consider entry near 140–145 ₹ with strict stop-loss, targeting 155–160 ₹ resistance. Long-term investors should wait for a clear reversal above 157 ₹ (50 DMA) with sustained volume before fresh positions.
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