NIVABUPA - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.9

Here’s a detailed technical analysis of Niva Bupa Health Insurance Company Ltd. (NIVABUPA) based on current indicators and price action

📉 Trend Analysis

Current Trend: Reversing to bearish

Price is below the 50-DMA (₹84.9) and hovering near the 200-DMA (₹80.8), indicating weakening momentum.

RSI at 40.4 suggests bearish bias but not yet oversold.

MACD at -0.13 shows a mild bearish crossover, confirming downward pressure.

📊 Moving Averages

Indicator Value Signal

50-DMA ₹84.9 Resistance

200-DMA ₹80.8 Support

Price ₹81.5 Near 200-DMA (critical zone)

Price is sandwiched between key averages, signaling indecision and potential for breakdown or bounce.

📈 Momentum Indicators

RSI (14): 40.4 → Bearish zone; weak momentum.

MACD: -0.13 → Bearish crossover; momentum fading.

Volume: 82.6L vs 1-week avg of 36.1L → Surge in volume, likely driven by selling pressure.

📉 Bollinger Bands

Price is near the lower band, indicating oversold conditions.

No squeeze pattern; volatility is expanding, which may precede a directional move.

📌 Support & Resistance Levels

Level Price Zone

Support 1 ₹80.0

Support 2 ₹76.5

Resistance 1 ₹84.9 (50-DMA)

Resistance 2 ₹89.0

Entry Zone: ₹76.5–₹80.0 (if RSI dips further and stabilizes)

Exit Zone: ₹84.5–₹89.0 (resistance zone)

🔍 Chart Pattern & Price Action

Price action suggests a descending triangle breakdown.

Trendlines show lower highs and flat support near ₹80.

A close below ₹80 with volume confirmation could trigger further downside.

⚠️ Conclusion

Technical Outlook: Bearish with oversold bounce potential

Momentum: Weak; caution advised

Suggested Strategy: Avoid fresh long positions until price reclaims ₹85+. Speculative entry near ₹76.5–₹80 with tight stop-loss may be considered.

Risk Level: High (due to poor recent earnings and elevated valuation)

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