NIACL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.5

📉 NIACL is currently in a consolidation phase with neutral momentum and weak breakout signals. Entry zone: ₹183–₹186; exit zone: ₹190–₹192. Watch for volume confirmation near resistance.

📊 Technical Overview

• Price Action: Trading at ₹187, slightly below 50-DMA (₹190) and 200-DMA (₹189), indicating indecision.
• RSI (48.9): Neutral zone, neither overbought nor oversold; lacks strong momentum.
• MACD (-0.77): Mild bearish crossover, suggesting weak downside pressure.
• Bollinger Bands: Price near mid-band, indicating range-bound movement.
• Volume: Below 1-week average, showing low participation and lack of conviction.
• Support Zones: ₹183.95 (S2), ₹185.45 (S1)
• Resistance Zones: ₹189.09 (R1), ₹191.23 (R2)

Sources: ETMoney Technicals

ET Money

✅ Positive

• Zero debt-to-equity ratio ensures strong financial health.
• Quarterly PAT increased from ₹347 Cr. to ₹391 Cr., showing earnings improvement.
• PEG ratio of 0.33 suggests undervaluation relative to growth.
• EPS of ₹7.05 supports moderate valuation.

⚠️ Limitation

• ROCE (3.72%) and ROE (3.54%) are low, indicating weak capital efficiency.
• Volume trends are weak, limiting breakout potential.
• MACD and RSI show neutral to bearish signals, lacking momentum.
• Dividend yield of 0.95% is modest for income-focused investors.

📉 Company Negative News

• No significant change in FII or DII holdings, indicating lack of institutional interest.
• ROE and ROCE remain below industry benchmarks.

📈 Company Positive News

• Quarterly profit variation of +80.2% reflects strong earnings recovery.
• 52-week performance up 60%, indicating long-term investor confidence.

🏢 Industry

• Insurance sector remains resilient with long-term growth potential.
• Industry P/E of 44.4 suggests high valuation across peers.

🧭 Conclusion

• NIACL is consolidating with neutral technical indicators and low momentum.
• Entry zone: ₹183–₹186; exit zone: ₹190–₹192 for short-term trades.
• Hold for long-term gains if price sustains above ₹192 with volume confirmation.