NIACL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | NIACL | Market Cap | 26,467 Cr. | Current Price | 161 ₹ | High / Low | 215 ₹ |
| Stock P/E | 22.6 | Book Value | 169 ₹ | Dividend Yield | 1.12 % | ROCE | 3.72 % |
| ROE | 3.54 % | Face Value | 5.00 ₹ | DMA 50 | 150 ₹ | DMA 200 | 162 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.02 % | PAT Qtr | 372 Cr. | PAT Prev Qtr | 63.2 Cr. |
| RSI | 59.8 | MACD | 6.97 | Volume | 10,05,472 | Avg Vol 1Wk | 9,00,326 |
| Low price | 117 ₹ | High price | 215 ₹ | PEG Ratio | 0.28 | Debt to equity | 0.00 |
| 52w Index | 44.6 % | Qtr Profit Var | 5.13 % | EPS | 7.11 ₹ | Industry PE | 31.7 |
📈 Chart & Trend: NIACL is trading above its 50 DMA (150 ₹) and near its 200 DMA (162 ₹), showing short-term strength but medium-term resistance. RSI at 59.8 indicates moderate bullish momentum, while MACD at 6.97 confirms positive crossover. Bollinger Bands are moderately wide, suggesting volatility with potential continuation of the uptrend.
🔑 Momentum Signals: Current price (161 ₹) is holding above support at 158–160 ₹. Resistance levels are seen at 170 ₹ and 180 ₹. Volume (10.0L) is slightly above the 1-week average (9.0L), showing healthy participation and supporting momentum.
🎯 Entry Zone: 158–160 ₹ near support.
💰 Exit Zone: 170 ₹ (partial profit) and 180 ₹ (full exit).
📊 Trend Status: Consolidating with bullish bias.
Positive
- PAT improved sharply (372 Cr. vs 63.2 Cr.).
- EPS at 7.11 ₹ supports valuation stability.
- PEG ratio at 0.28 indicates undervaluation relative to growth.
- Debt-free structure adds financial resilience.
- Price trading above 50 DMA confirms short-term strength.
Limitation
- Weak ROCE (3.72%) and ROE (3.54%) highlight poor efficiency.
- Price still near 200 DMA resistance, limiting upside.
- Return ratios remain weak despite profit improvement.
Company Negative News
- Return ratios remain weak despite earnings recovery.
- Limited foreign investor confidence (FII holding up only 0.01%).
Company Positive News
- PAT surged significantly, showing operational recovery.
- DII holdings increased (+0.02%), reflecting domestic support.
- Trading above both 50 DMA and 200 DMA confirms technical strength.
Industry
- Industry PE at 31.7, higher than NIACL’s 22.6, suggesting relative undervaluation.
- Insurance sector benefits from rising demand but faces margin pressures.
- Sector rotation favors financial services in stable growth phases.
Conclusion
NIACL shows short-term bullish momentum with strong PAT recovery and technical alignment above key moving averages. However, weak return ratios and resistance near 200 DMA limit upside potential. Entry near 158–160 ₹ is favorable with exits at 170–180 ₹. Best suited for short-term trades; long-term investors should wait for sustained improvement in efficiency metrics.