NIVABUPA - Technical Analysis with Chart Patterns & Indicators

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

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Technical Rating: 2.8

Technical Analysis Summary

• Trend: Reversing with persistent bearish momentum
• Moving Averages: Price (₹75.4) is below both DMA 50 (₹79.4) and DMA 200 (₹80.5), indicating short-term and long-term weakness
• RSI (36.1): Approaching oversold territory, signaling weak momentum
• MACD (-1.85): Bearish crossover, confirming downward pressure
• Bollinger Bands: Price near lower band, suggesting oversold conditions but no reversal signal yet
• Volume: Slightly below average (15.1L vs 16.0L), indicating reduced trading interest

Entry & Exit Zones

• Support: ₹72 – ₹74 (recent base and psychological level)
• Resistance: ₹80 – ₹84 (DMA levels and prior breakdown zone)
• Optimal Entry: ₹73 – ₹75 if RSI stabilizes and MACD flattens
• Exit Zone: ₹80 – ₹84 if price rebounds and faces resistance

Positive

• Low debt-to-equity ratio (0.08) supports financial flexibility
• Price near 52-week low may attract value-seeking investors
• Positive DII sentiment (+0.25%)

Limitation

• High P/E of 98.7 vs industry average of 44.4 suggests overvaluation
• Negative ROCE (7.45%) and ROE (8.18%) reflect poor capital efficiency
• Massive quarterly profit decline (-386%) from ₹206 Cr. to ₹-91.4 Cr.
• MACD and RSI indicate continued bearish momentum

Company Negative News

• Sharp earnings deterioration and concerns over underwriting losses in health insurance portfolio

Company Positive News

• Expansion in digital health services and increased focus on retail health insurance
• Strategic partnerships and brand strength in the health insurance space

Industry

• NIVABUPA operates in the health insurance and financial services sector
• Peers include Star Health, ICICI Lombard, and HDFC Ergo

Conclusion

NIVABUPA is currently reversing with weak technical indicators and deteriorating fundamentals. While the stock trades near support and may attract contrarian interest, caution is warranted due to poor earnings and bearish momentum. Traders may consider speculative entry near ₹74 with targets around ₹84, watching RSI and MACD for signs of stabilization.