NIVABUPA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | NIVABUPA | Market Cap | 15,909 Cr. | Current Price | 86.0 ₹ | High / Low | 94.0 ₹ |
| Stock P/E | 122 | Book Value | 20.5 ₹ | Dividend Yield | 0.00 % | ROCE | 3.45 % |
| ROE | 3.82 % | Face Value | 10.0 ₹ | DMA 50 | 78.2 ₹ | DMA 200 | 77.5 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | 0.45 % | PAT Qtr | 345 Cr. | PAT Prev Qtr | -87.6 Cr. |
| RSI | 69.3 | MACD | 1.88 | Volume | 61,83,271 | Avg Vol 1Wk | 28,86,350 |
| Low price | 67.5 ₹ | High price | 94.0 ₹ | PEG Ratio | 0.95 | Debt to equity | 0.07 |
| 52w Index | 69.8 % | Qtr Profit Var | 67.5 % | EPS | 0.71 ₹ | Industry PE | 42.8 |
📊 Chart Analysis: NIVABUPA is trading at ₹86.0, above both the 50 DMA (₹78.2) and 200 DMA (₹77.5), confirming a short-term bullish trend. RSI at 69.3 indicates the stock is approaching overbought territory. MACD at 1.88 shows a positive crossover, supporting bullish momentum. Bollinger Bands suggest widening volatility as price nears the upper band. Current volume (61,83,271) is significantly higher than the 1-week average (28,86,350), signaling strong buying interest.
📈 Momentum Signals: Short-term momentum is bullish, supported by volume surge and MACD crossover. However, RSI near 70 warns of potential overbought conditions and possible pullback.
💹 Entry & Exit Zones:
- ✅ Optimal Entry: ₹82–₹84 (support near 50 DMA)
- 🚀 Target Exit: ₹92–₹94 (resistance near recent highs)
- ⚠️ Stop Loss: ₹80 (below short-term support)
🔎 Trend Status: The stock is trending upward with strong momentum, but near-term consolidation or reversal risk exists due to overbought RSI levels.
Positive
- 📌 Strong quarterly turnaround with PAT of 345 Cr vs previous loss of -87.6 Cr.
- 📌 EPS growth supported by profit variation of 67.5%.
- 📌 FII (+0.29%) and DII (+0.45%) holdings increased, showing institutional confidence.
Limitation
- ⚠️ Very high P/E ratio (122) compared to industry average (42.8), indicating overvaluation.
- ⚠️ Low ROCE (3.45%) and ROE (3.82%) reflect weak capital efficiency.
- ⚠️ Dividend yield is 0%, offering no income return to investors.
Company Negative News
- 📉 Weak return ratios (ROCE and ROE) highlight inefficiency.
- 📉 Elevated valuation may deter long-term investors.
Company Positive News
- 📈 Strong profit recovery in the latest quarter.
- 📈 Institutional investors increased holdings, boosting confidence.
- 📈 PEG ratio of 0.95 suggests growth potential relative to earnings.
Industry
- 🏦 Industry P/E at 42.8 shows NIVABUPA trades at a steep premium.
- 🏦 Insurance and healthcare sector growth driven by rising demand for coverage and services.
Conclusion
✅ NIVABUPA shows strong short-term bullish momentum with volume support and MACD crossover. However, RSI near overbought levels and high valuation pose risks. Traders may consider entry near ₹82–₹84 with exits around ₹92–₹94, while long-term investors should weigh growth potential against weak return ratios and steep valuation.
Would you like me to extend this with a sector peer comparison or a valuation deep dive to assess how NIVABUPA stacks up against competitors?