NMDC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | NMDC | Market Cap | 69,913 Cr. | Current Price | 79.5 ₹ | High / Low | 86.8 ₹ |
| Stock P/E | 10.1 | Book Value | 36.8 ₹ | Dividend Yield | 4.15 % | ROCE | 30.3 % |
| ROE | 24.4 % | Face Value | 1.00 ₹ | DMA 50 | 80.2 ₹ | DMA 200 | 76.6 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -0.32 % | PAT Qtr | 1,738 Cr. | PAT Prev Qtr | 1,695 Cr. |
| RSI | 48.2 | MACD | -0.61 | Volume | 1,63,65,478 | Avg Vol 1Wk | 2,03,20,024 |
| Low price | 59.5 ₹ | High price | 86.8 ₹ | PEG Ratio | -0.94 | Debt to equity | 0.11 |
| 52w Index | 73.1 % | Qtr Profit Var | -10.6 % | EPS | 7.85 ₹ | Industry PE | 16.6 |
📉 Chart & Trend: NMDC is trading at ₹79.5, slightly below the 50 DMA (₹80.2) but above the 200 DMA (₹76.6), indicating short-term weakness but medium-term strength. RSI at 48.2 shows neutral momentum, while MACD at -0.61 reflects mild negative crossover. Bollinger Bands suggest price is mid-range, showing consolidation with limited volatility.
📊 Volume: Current volume (1.63 Cr) is lower than the 1-week average (2.03 Cr), showing reduced participation and lack of strong buying interest.
📈 Momentum Signals: Short-term momentum is weak. Support levels are seen at ₹76–₹77 and strong support at ₹59.5 (52-week low). Resistance lies at ₹80–₹82 (50 DMA zone) and ₹86.8 (recent high).
🎯 Entry Zone: ₹76–₹77 (risk-managed entry zone).
🚪 Exit Zone: ₹82–₹86 (profit-taking zone near resistance).
🔎 Trend Status: Consolidation with mild bearish bias. The stock is consolidating between support and resistance levels, with neutral RSI and weak MACD signaling caution.
Positive
- Strong ROCE (30.3%) and ROE (24.4%) show excellent capital efficiency.
- Dividend yield of 4.15% adds strong investor appeal.
- Low debt-to-equity ratio (0.11) ensures financial stability.
- EPS at ₹7.85 reflects consistent earnings power.
- FII holding increased by 0.44%, showing foreign investor confidence.
Limitation
- PEG ratio of -0.94 suggests weak growth prospects.
- Price trading below 50 DMA reflects short-term technical weakness.
- Volume participation is lower than average, limiting momentum strength.
Company Negative News
- Quarterly profit variation at -10.6% shows earnings decline.
- DII holding reduced by -0.32%, reflecting weaker domestic institutional sentiment.
Company Positive News
- PAT improved sequentially to ₹1,738 Cr from ₹1,695 Cr.
- FII inflows highlight confidence in long-term fundamentals.
Industry
- Industry PE at 16.6 is higher than NMDC’s P/E of 10.1, suggesting undervaluation relative to peers.
- Metals and mining sector benefits from global commodity demand but faces cyclical risks tied to prices and exports.
Conclusion
⚠️ NMDC is in a consolidation phase with mild bearish bias, trading below the 50 DMA but above the 200 DMA, with neutral RSI and weak MACD. Fundamentals show strong efficiency, high dividend yield, and undervaluation compared to industry peers. However, earnings decline, weak growth prospects, and reduced domestic institutional support limit upside. Short-term traders may consider entries near ₹76–₹77 with exits around ₹82–₹86, while long-term investors can accumulate given strong fundamentals and attractive valuations.
Would you like me to extend this into a peer benchmarking overlay against other mining and metals companies like Coal India, Hindustan Copper, and Vedanta? That would highlight whether NMDC’s consolidation is sector-driven or company-specific.