NIACL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.1

📈 Technical Analysis

• Chart Patterns: NIACL is trading near its lower range of 52-week performance, showing weakness and bearish sentiment.
• Moving Averages: Current price (156 ₹) is below both 50 DMA (175 ₹) and 200 DMA (184 ₹), confirming a downtrend.
• RSI: At 34.8, RSI is close to oversold territory, suggesting possible short-term bounce but weak momentum overall.
• MACD: Negative at -4.59, indicating bearish continuation.
• Bollinger Bands: Price near lower band, signaling oversold condition and potential minor rebound.
• Volume Trends: Current volume (2.86L) is lower than average weekly volume (5.47L), showing reduced trading interest.

🎯 Momentum & Trade Zones

• Support Levels: 150 ₹ and strong support near 135 ₹.
• Resistance Levels: 175 ₹ (50 DMA) and 184 ₹ (200 DMA).
• Entry Zone: Accumulate cautiously near 150–160 ₹ if rebound signals appear.
• Exit Zone: Short-term exit near 175–185 ₹.
• Trend: Stock is currently reversing downward with weak momentum, possible consolidation near lows.

✅ Positive

• Book value at 169 ₹ provides valuation cushion.
• Dividend yield of 1.17% offers shareholder return.
• PEG ratio at 0.28 indicates reasonable valuation relative to growth.
• Debt-free balance sheet (Debt-to-equity: 0.00).

⚠️ Limitation

• ROCE (3.72%) and ROE (3.54%) are very low, showing weak efficiency.
• Stock trading below both 50 & 200 DMA, confirming bearish trend.
• Volume lower than average, indicating reduced investor interest.
• 52-week index at only 24%, reflecting underperformance.

📉 Company Negative News

• Quarterly PAT dropped sharply from 391 Cr. to 63.2 Cr.
• Quarterly profit variation at -10.9%, highlighting earnings weakness.
• No change in FII/DII holdings, showing lack of institutional conviction.

📊 Company Positive News

• Debt-free status ensures financial stability.
• PEG ratio suggests valuation is not overstretched.
• Dividend yield provides minor income support to investors.

🏭 Industry

• Industry P/E at 42.8, higher than NIACL’s P/E of 22.4, suggesting NIACL trades at discount.
• Insurance sector outlook remains stable, but NIACL’s weak profitability limits upside potential.

📝 Conclusion

• NIACL is in a bearish reversal phase, trading below key moving averages.
• Oversold RSI suggests possible short-term bounce, but fundamentals remain weak.
• Best strategy: cautious accumulation near 150–160 ₹ with strict stop-loss; exit near 175–185 ₹.
• Medium-term outlook cautious; recovery depends on earnings improvement and price sustaining above 175–184 ₹ resistance levels.