NLCINDIA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.1

📊 Chart Patterns: NLC India is trading at 239 ₹, below both its 50 DMA (249 ₹) and 200 DMA (245 ₹). The chart shows weakness but with potential support around 230–235 ₹.

📈 Moving Averages: Current price is below short- and long-term averages, indicating bearish bias. A close above 245–249 ₹ would signal strength.

📉 RSI: At 40.0, RSI is weak but not oversold, suggesting limited downside with scope for consolidation.

📉 MACD: Negative (-3.88), confirming bearish momentum and lack of bullish crossover.

📊 Bollinger Bands: Price is near the lower band, showing weakness but potential for mean reversion.

📊 Volume Trends: Current volume (7.27 lakh) is below average weekly volume (11.94 lakh), indicating reduced participation and lack of strong buying interest.

📍 Momentum Signals: Short-term momentum is bearish. RSI suggests consolidation rather than sharp rebound.

🎯 Entry Zone: 230–235 ₹ (near support). Suitable for accumulation with risk management.

🎯 Exit Zone: 245–250 ₹ (near 200 DMA and 50 DMA resistance). Strong resistance at 249 ₹.

🔎 Trend Status: The stock is consolidating after a correction, with sideways movement expected near support levels.

Positive

• Quarterly PAT improved significantly (485 Cr. vs 368 Cr.), showing strong growth (+43%).
• EPS at 13.8 ₹ supports valuation.
• FII holdings increased (+0.30%), showing foreign investor confidence.
• Valuation attractive compared to industry PE (17.2 vs 26.7).

Limitation

• ROCE (9.02%) and ROE (5.61%) are relatively weak.
• PEG ratio (55.6) indicates poor growth prospects relative to valuation.
• Price trading below both 50 DMA and 200 DMA.
• Volume participation is declining.

Company Negative News

• Stock corrected from 292 ₹ to 239 ₹.
• DII holdings declined (-0.39%).

Company Positive News

• Quarterly PAT surged (+43%).
• FII holdings increased (+0.30%).
• Dividend yield of 1.24% provides steady returns.

Industry

• Industry PE is 26.7, higher than NLC India’s 17.2, suggesting undervaluation.
• Power sector remains defensive with government support for energy and infrastructure projects.

Conclusion

⚠️ NLC India is consolidating near support levels with weak technical momentum. Fundamentals show improvement in profitability and undervaluation relative to peers, but efficiency metrics remain weak. Traders may consider entries near 230–235 ₹ with exits around 245–250 ₹. Long-term investors should wait for a breakout above 250 ₹ to confirm trend reversal.