NLCINDIA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | NLCINDIA | Market Cap | 34,097 Cr. | Current Price | 246 ₹ | High / Low | 292 ₹ |
| Stock P/E | 17.8 | Book Value | 131 ₹ | Dividend Yield | 1.46 % | ROCE | 9.02 % |
| ROE | 5.61 % | Face Value | 10.0 ₹ | DMA 50 | 253 ₹ | DMA 200 | 248 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | -0.15 % | PAT Qtr | 485 Cr. | PAT Prev Qtr | 368 Cr. |
| RSI | 44.9 | MACD | -0.14 | Volume | 17,41,530 | Avg Vol 1Wk | 21,74,646 |
| Low price | 186 ₹ | High price | 292 ₹ | PEG Ratio | 57.3 | Debt to equity | 0.47 |
| 52w Index | 56.4 % | Qtr Profit Var | 43.0 % | EPS | 13.8 ₹ | Industry PE | 25.6 |
📊 Chart & Trend Analysis:
NLCINDIA is trading at ₹246, slightly below its 50 DMA (₹253) and near its 200 DMA (₹248), indicating mild weakness and sideways consolidation. RSI at 44.9 suggests neutral momentum, not yet oversold. MACD at -0.14 shows a flat-to-bearish crossover, signaling indecision. Bollinger Bands place price near the mid-to-lower range, reflecting consolidation. Current volume (17.4 lakh) is lower than the 1-week average (21.7 lakh), showing reduced participation and lack of strong buying interest.
📈 Momentum Signals:
- RSI neutral, leaning slightly bearish.
- MACD flat, showing indecision and lack of momentum.
- Price hovering around 200 DMA suggests sideways consolidation.
- Low volume indicates weak conviction in current moves.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹240 – ₹245 (near support at 200 DMA).
- Exit Zone: ₹255 – ₹260 (resistance at 50 DMA).
- Stop Loss: ₹235 (below key support).
📌 Trend Status: The stock is consolidating, holding near long-term support but struggling to break above short-term resistance levels.
Positive
- Quarterly PAT improved to ₹485 Cr. from ₹368 Cr., showing strong earnings growth (+43%).
- EPS of ₹13.8 reflects stable earnings base.
- Dividend yield of 1.46% provides steady income.
- Valuation (P/E 17.8) is lower than industry average (25.6), suggesting relative attractiveness.
Limitation
- ROCE (9.02%) and ROE (5.61%) are modest compared to peers.
- PEG ratio of 57.3 indicates expensive growth prospects.
- Stock trading below 50 DMA reflects weak short-term technical strength.
Company Negative News
- FII holding decreased (-0.03%), showing reduced foreign investor confidence.
- DII holding decreased (-0.15%), reflecting weaker domestic institutional support.
Company Positive News
- Quarterly profit growth of 43% signals operational improvement.
- EPS strength supports long-term investor confidence.
Industry
- Industry P/E at 25.6 is higher than company’s P/E (17.8), suggesting NLCINDIA is undervalued relative to peers.
- Power and energy sector remains cyclical, influenced by demand growth, government policies, and infrastructure expansion.
Conclusion
⚖️ NLCINDIA is consolidating near its 200 DMA with weak momentum signals from RSI and MACD. While fundamentals show strong quarterly profit growth and attractive valuation compared to industry peers, modest return ratios and high PEG ratio limit upside. Short-term traders may consider entry near ₹240–₹245 with exits around ₹255–₹260, while long-term investors should wait for sustained earnings improvement and stronger sector momentum before fresh accumulation.