NMDC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.9

📊 Chart Patterns: NMDC is trading at 76.3 ₹, close to its 52-week high (79.2 ₹). The chart shows strong upward momentum with minor consolidation near resistance.

📈 Moving Averages: Current price is above both DMA 50 (75.4 ₹) and DMA 200 (72.9 ₹), confirming bullish trend support.

📉 RSI: At 53.3, RSI is neutral, suggesting balanced momentum without overbought or oversold signals.

📈 MACD: Positive (0.52), showing bullish crossover and continuation of upward momentum.

📊 Bollinger Bands: Price is near the upper band, indicating strength but also potential short-term resistance.

📊 Volume Trends: Current volume (93.6 lakh) is below average weekly volume (136.9 lakh), suggesting reduced participation but still healthy liquidity.

📍 Momentum Signals: Short-term momentum is bullish with potential consolidation near resistance levels.

🎯 Entry Zone: 73–75 ₹ (near DMA support). Good accumulation zone for traders.

🎯 Exit Zone: 78–80 ₹ (near 52-week high resistance). Profit booking advised around 79.2 ₹.

🔎 Trend Status: The stock is trending upward with minor consolidation near resistance.

Positive

• Strong ROCE (30.3%) and ROE (24.4%) indicate efficient capital use.
• Low debt-to-equity ratio (0.11) ensures financial stability.
• Dividend yield of 4.32% provides attractive returns.
• Valuation attractive: P/E (9.54) well below industry average (20.0).
• FII holdings increased (+0.83%).

Limitation

• PAT declined sequentially (1,969 Cr. → 1,695 Cr.).
• PEG ratio (-0.88) indicates weak growth prospects.
• Volume participation lower than average, showing reduced momentum strength.

Company Negative News

• Sequential decline in quarterly PAT.
• DII holdings decreased (-0.10%).

Company Positive News

• Quarterly profit variation shows strong growth (+33.5%).
• FII holdings increased (+0.83%).
• Dividend yield of 4.32% supports investor confidence.

Industry

• Industry PE is 20.0, higher than NMDC’s 9.54, suggesting undervaluation.
• Metals and mining sector remains cyclical but supported by infrastructure and industrial demand.

Conclusion

✅ NMDC is in a bullish trend, trading above key moving averages and near its 52-week high. Fundamentals are strong with high efficiency, low debt, and attractive dividend yield. Short-term traders may enter near 73–75 ₹ and exit around 78–80 ₹. Long-term investors can hold for continued strength, but should monitor profit growth and volume trends.