NLCINDIA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | NLCINDIA | Market Cap | 36,267 Cr. | Current Price | 262 ₹ | High / Low | 292 ₹ |
| Stock P/E | 18.7 | Book Value | 131 ₹ | Dividend Yield | 1.37 % | ROCE | 9.02 % |
| ROE | 5.61 % | Face Value | 10.0 ₹ | DMA 50 | 256 ₹ | DMA 200 | 251 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | -0.15 % | PAT Qtr | 428 Cr. | PAT Prev Qtr | 485 Cr. |
| RSI | 54.0 | MACD | 0.39 | Volume | 14,02,300 | Avg Vol 1Wk | 48,03,236 |
| Low price | 202 ₹ | High price | 292 ₹ | PEG Ratio | 60.4 | Debt to equity | 0.47 |
| 52w Index | 65.9 % | Qtr Profit Var | 4.78 % | EPS | 14.0 ₹ | Industry PE | 30.0 |
📉 Chart & Trend: NLCINDIA is trading at ₹262, above both 50 DMA (₹256) and 200 DMA (₹251), confirming short-term bullish bias. RSI at 54.0 shows neutral-to-positive momentum, while MACD at 0.39 indicates mild positive crossover. Bollinger Bands suggest price is mid-range, reflecting consolidation with upward potential.
📊 Volume: Current volume (14.0 L) is significantly lower than the 1-week average (48.0 L), showing reduced participation and lack of strong buying interest.
📈 Momentum Signals: Short-term momentum is mildly positive. Support levels are seen at ₹255–₹256 and strong support at ₹251 (200 DMA). Resistance lies at ₹270–₹275 and ₹292 (recent high).
🎯 Entry Zone: ₹255–₹260 (risk-managed entry zone).
🚪 Exit Zone: ₹270–₹292 (profit-taking zone near resistance).
🔎 Trend Status: Consolidation with bullish bias. The stock is holding above key moving averages, suggesting strength but facing resistance near highs.
Positive
- EPS at ₹14.0 reflects stable earnings power.
- Dividend yield of 1.37% adds investor appeal.
- Book value of ₹131 provides margin of safety relative to current price.
- Debt-to-equity ratio of 0.47 indicates moderate leverage.
Limitation
- ROCE (9.02%) and ROE (5.61%) are modest compared to peers.
- PEG ratio of 60.4 suggests expensive growth prospects.
- Volume participation is weak compared to averages, limiting momentum strength.
Company Negative News
- PAT declined from ₹485 Cr to ₹428 Cr, showing earnings pressure.
- FII holding reduced by -0.03% and DII holding by -0.15%, reflecting weaker institutional sentiment.
Company Positive News
- Quarterly profit variation at 4.78% shows sequential improvement.
- EPS stability supports long-term valuation appeal.
Industry
- Industry PE at 30.0 is higher than NLCINDIA’s P/E of 18.7, suggesting undervaluation relative to peers.
- Power and energy sector benefits from rising demand but faces regulatory and tariff-related risks.
Conclusion
⚠️ NLCINDIA is in a consolidation phase with bullish bias, trading above both 50 DMA and 200 DMA with neutral RSI and mild positive MACD. Fundamentals show decent dividend yield, moderate leverage, and undervaluation compared to industry peers. However, modest ROCE/ROE, weak volume participation, and declining profits limit upside. Short-term traders may consider entries near ₹255–₹260 with exits around ₹270–₹292, while long-term investors should wait for earnings stability and stronger momentum before fresh accumulation.
Would you like me to extend this into a peer benchmarking overlay against other power sector companies like NHPC, NTPC, and SJVN? That would highlight whether NLCINDIA’s bullish bias is sector-driven or company-specific.