NLCINDIA - Technical Analysis with Chart Patterns & Indicators

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

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Technical Rating: 3.6

Technical Analysis Summary

• Trend: Reversing from highs with weakening momentum
• Moving Averages: Price (₹262) is slightly above DMA 50 (₹260) and DMA 200 (₹245), indicating mild bullish support
• RSI (48.2): Neutral zone, lacking strong momentum
• MACD (-0.90): Bearish crossover, signaling short-term weakness
• Bollinger Bands: Price near mid-band, suggesting consolidation with limited volatility
• Volume: Below average (22.5L vs 29.8L), indicating reduced market interest

Entry & Exit Zones

• Support: ₹250 – ₹255 (near DMA 200 and recent base)
• Resistance: ₹270 – ₹275 (recent swing highs)
• Optimal Entry: ₹255 – ₹260 on pullback with RSI stabilization
• Exit Zone: ₹270 – ₹275 if price struggles near resistance

Positive

• Quarterly PAT growth of 43% (₹485 Cr. vs ₹368 Cr.)
• EPS of ₹13.8 and attractive P/E of 18.9 vs industry average of 30.9
• Price up 71.5% over 52 weeks
• Positive FII sentiment (+0.30%)

Limitation

• MACD indicates bearish momentum
• ROCE (9.02%) and ROE (5.61%) below industry benchmarks
• PEG ratio of 61.1 suggests valuation concerns
• Negative DII sentiment (-0.39%)

Company Negative News

• Concerns over coal supply constraints and regulatory delays in power projects

Company Positive News

• Strong earnings growth and expansion in renewable energy initiatives
• Government support for energy infrastructure and strategic investments

Industry

• NLCINDIA operates in the power generation and mining sector
• Peers include NTPC, NHPC, and Coal India

Conclusion

NLCINDIA is currently reversing from its highs with mixed technical signals and weakening momentum. While fundamentals show earnings strength and valuation appeal, caution is warranted due to bearish MACD and low volume. Traders may consider entry near ₹255 with targets around ₹275, watching for RSI recovery and volume confirmation.