NMDC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | NMDC | Market Cap | 70,721 Cr. | Current Price | 80.4 ₹ | High / Low | 86.8 ₹ |
| Stock P/E | 9.96 | Book Value | 36.8 ₹ | Dividend Yield | 4.11 % | ROCE | 30.3 % |
| ROE | 24.4 % | Face Value | 1.00 ₹ | DMA 50 | 79.5 ₹ | DMA 200 | 75.0 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -0.32 % | PAT Qtr | 1,695 Cr. | PAT Prev Qtr | 1,969 Cr. |
| RSI | 49.6 | MACD | 0.25 | Volume | 3,59,35,390 | Avg Vol 1Wk | 4,47,77,728 |
| Low price | 59.5 ₹ | High price | 86.8 ₹ | PEG Ratio | -0.92 | Debt to equity | 0.11 |
| 52w Index | 76.4 % | Qtr Profit Var | 33.5 % | EPS | 8.08 ₹ | Industry PE | 20.2 |
📊 Chart & Trend Analysis:
NMDC is trading at ₹80.4, slightly above its 50 DMA (₹79.5) and comfortably above its 200 DMA (₹75.0), indicating medium-term strength. RSI at 49.6 suggests neutral momentum, neither overbought nor oversold. MACD at 0.25 shows a mild positive crossover, hinting at bullish bias. Bollinger Bands place price near the mid-range, reflecting consolidation with potential upside. Current volume (3.59 Cr.) is lower than the 1-week average (4.47 Cr.), showing reduced participation but steady interest.
📈 Momentum Signals:
- RSI neutral, suggesting balanced momentum.
- MACD positive crossover indicates mild bullishness.
- Price above both 50 & 200 DMA supports upward bias.
- Volume slightly below average, showing moderate conviction.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹78 – ₹80 (near 50 DMA support).
- Exit Zone: ₹85 – ₹87 (resistance near recent highs).
- Stop Loss: ₹76 (below 200 DMA support).
📌 Trend Status: The stock is trending upward with mild bullish bias, supported by moving averages and MACD strength.
Positive
- Strong ROCE (30.3%) and ROE (24.4%) highlight efficient capital use.
- Dividend yield of 4.11% provides attractive income for investors.
- Low debt-to-equity ratio (0.11) ensures financial stability.
- FII holding increased (+0.44%), showing foreign investor confidence.
- Valuation (P/E 9.96) is significantly lower than industry average (20.2), suggesting undervaluation.
Limitation
- Quarterly PAT declined from ₹1,969 Cr. to ₹1,695 Cr., showing earnings pressure.
- DII holding decreased (-0.32%), reflecting weaker domestic institutional support.
- PEG ratio (-0.92) indicates weak growth prospects.
Company Negative News
- Sequential decline in quarterly profits signals margin pressure.
- DII holding reduced, showing lack of domestic institutional conviction.
Company Positive News
- Quarterly profit variation (+33.5%) shows strong year-on-year improvement.
- EPS of ₹8.08 reflects solid earnings base.
- FII inflows indicate foreign investor confidence in fundamentals.
Industry
- Industry P/E at 20.2 is higher than NMDC’s P/E (9.96), suggesting undervaluation compared to peers.
- Metals and mining sector remains cyclical, influenced by global commodity prices and demand trends.
Conclusion
⚖️ NMDC is trending upward with mild bullish signals from MACD and support from moving averages. Fundamentals remain strong with high ROCE, ROE, and attractive dividend yield, though earnings pressure and weak growth outlook are limitations. Short-term traders may consider entry near ₹78–₹80 with exits around ₹85–₹87, while long-term investors may find value given the low P/E and strong fundamentals compared to industry peers.