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NMDC - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 24 May 26, 10:27 pm

Technical Rating: 4.0

Stock Code NMDC Market Cap 77,385 Cr. Current Price 88.0 ₹ High / Low 94.2 ₹
Stock P/E 11.2 Book Value 36.8 ₹ Dividend Yield 3.76 % ROCE 30.3 %
ROE 24.4 % Face Value 1.00 ₹ DMA 50 86.2 ₹ DMA 200 80.0 ₹
Chg in FII Hold 0.12 % Chg in DII Hold -0.30 % PAT Qtr 1,738 Cr. PAT Prev Qtr 1,695 Cr.
RSI 49.2 MACD 0.89 Volume 1,57,87,984 Avg Vol 1Wk 1,56,63,323
Low price 66.8 ₹ High price 94.2 ₹ PEG Ratio -1.04 Debt to equity 0.11
52w Index 77.1 % Qtr Profit Var -10.6 % EPS 7.85 ₹ Industry PE 20.0

📈 Chart & Trend: NMDC is trading at 88.0 ₹, above its 50 DMA (86.2 ₹) and 200 DMA (80.0 ₹), reflecting short-term strength. Support lies at 86–87 ₹, with resistance around 92–94 ₹.

🔎 Momentum Signals: RSI at 49.2 indicates neutral momentum. MACD at 0.89 shows a mild bullish crossover. Entry zone: 86–87 ₹. Exit zone: 92–94 ₹.

📊 Volume Trends: Current volume (1.58 Cr.) is in line with the 1-week average (1.56 Cr.), suggesting steady participation and balanced sentiment.

📉 Bollinger Bands: Bands are moderately tight, pointing to consolidation with potential breakout attempts.

📌 Trend Status: The stock is consolidating with mild bullish bias supported by moving averages.

Positive

  • Strong ROCE (30.3%) and ROE (24.4%) highlight efficient capital use.
  • Dividend yield of 3.76% provides steady shareholder returns.
  • Debt-to-equity ratio of 0.11 indicates low leverage.
  • Trading above both 50 DMA and 200 DMA confirms technical strength.

Limitation

  • Quarterly PAT variation (-10.6%) shows earnings pressure.
  • PEG ratio of -1.04 indicates poor growth relative to valuation.
  • Neutral RSI and mild MACD signal limited momentum.
  • EPS of 7.85 ₹ remains modest compared to industry peers.

Company Negative News

  • DII holdings declined (-0.30%), showing reduced domestic institutional support.

Company Positive News

  • FII holdings increased (+0.12%), reflecting foreign investor confidence.
  • Quarterly PAT at 1,738 Cr. remains strong despite variation.

Industry

  • Industry PE at 20.0 suggests sector is moderately valued compared to NMDC’s lower P/E (11.2), making it attractive on valuation.
  • Metals and mining sector benefiting from infrastructure demand and commodity price recovery.

Conclusion

NMDC is consolidating with mild bullish bias, supported by moving averages and strong fundamentals. Attractive valuation and dividend yield provide long-term appeal, though earnings variation and modest momentum limit immediate upside. Best suited for cautious entry near 86–87 ₹ with profit booking around 92–94 ₹.

NMDC is in a consolidating phase with valuation appeal. To enrich this, I can extend into a peer benchmarking analysis or a sector overlay comparison to highlight its position against other mining and metals peers.

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