NLCINDIA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | NLCINDIA | Market Cap | 43,901 Cr. | Current Price | 317 ₹ | High / Low | 329 ₹ |
| Stock P/E | 22.6 | Book Value | 131 ₹ | Dividend Yield | 1.14 % | ROCE | 9.02 % |
| ROE | 5.61 % | Face Value | 10.0 ₹ | DMA 50 | 278 ₹ | DMA 200 | 259 ₹ |
| Chg in FII Hold | 0.39 % | Chg in DII Hold | 0.26 % | PAT Qtr | 428 Cr. | PAT Prev Qtr | 485 Cr. |
| RSI | 71.8 | MACD | 13.4 | Volume | 56,11,583 | Avg Vol 1Wk | 92,36,531 |
| Low price | 213 ₹ | High price | 329 ₹ | PEG Ratio | 73.1 | Debt to equity | 0.47 |
| 52w Index | 89.6 % | Qtr Profit Var | 4.78 % | EPS | 14.0 ₹ | Industry PE | 31.0 |
📈 Chart & Trend: NLCINDIA is trading well above its 50 DMA (278 ₹) and 200 DMA (259 ₹), confirming strong bullish momentum. RSI at 71.8 indicates overbought conditions, while MACD at 13.4 reflects strong upward momentum. Bollinger Bands are stretched, suggesting high volatility and risk of short-term pullback.
🔎 Momentum Signals: Short-term momentum remains bullish but overextended. Strong support lies at 305–308 ₹, while resistance is seen at 322–329 ₹. Entry zone: 305–308 ₹. Exit zone: 322–329 ₹.
📊 Volume Trends: Current volume (56.1 lakh) is below the 1-week average (92.3 lakh), indicating reduced participation despite price strength, which may limit upside continuation.
Positive
- Trading above both 50 DMA and 200 DMA confirms bullish strength.
- Dividend yield of 1.14% provides shareholder returns.
- FII holdings increased (+0.39%) and DII holdings (+0.26%) show institutional support.
- EPS of 14.0 ₹ supports valuation stability.
Limitation
- Weak ROE (5.61%) and ROCE (9.02%) compared to peers.
- PEG ratio of 73.1 indicates poor growth prospects relative to valuation.
- RSI above 70 signals overbought conditions, limiting upside potential.
Company Negative News
- PAT declined from 485 Cr. to 428 Cr., showing earnings pressure.
- High debt-to-equity ratio (0.47) adds financial risk.
Company Positive News
- Quarterly profit variation (+4.78%) shows resilience despite decline in absolute PAT.
- Price near 52-week high (89.6% index), reflecting strong investor sentiment.
Industry
- Industry PE at 31.0 highlights NLCINDIA trades at a discount (P/E 22.6).
- Power sector outlook stable, but fundamentals weaker than industry average.
Conclusion
⚖️ NLCINDIA is trending upward with strong technical signals supported by price above averages and institutional inflows. Entry near 305–308 ₹ offers favorable risk-reward, while resistance lies at 322–329 ₹. Weak fundamentals, high PEG ratio, and overbought RSI limit upside potential. A breakout above 329 ₹ with strong volumes could trigger momentum toward new highs, but caution is advised.