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NIACL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.1

Last Updated Time : 02 Feb 26, 10:12 am

Technical 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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