NMDC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 4.0

Technical Analysis Summary

• Trend: Trending upward with stable momentum
• Moving Averages: Price (₹75.8) is above DMA 50 (₹74.8) and DMA 200 (₹71.9), confirming bullish alignment
• RSI (51.5): Neutral zone, with room for upside
• MACD (0.04): Mild bullish crossover, suggesting continuation potential
• Bollinger Bands: Price near mid-band, indicating consolidation with breakout potential
• Volume: Below average (1.28 Cr. vs 1.84 Cr.), showing reduced participation

Entry & Exit Zones

• Support: ₹72 – ₹74 (DMA 200 and recent base)
• Resistance: ₹80 – ₹83 (recent swing highs)
• Optimal Entry: ₹74 – ₹76 on pullback with MACD confirmation
• Exit Zone: ₹80 – ₹83 if price stalls near resistance

Positive

• Strong ROCE (30.3%) and ROE (24.4%) indicate operational efficiency
• Low P/E of 9.38 vs industry average of 22.7
• EPS of ₹8.08 and attractive dividend yield of 4.35%
• Positive FII sentiment (+0.83%)

Limitation

• Volume below average, indicating weak conviction
• PEG ratio of -0.87 suggests valuation distortion due to earnings volatility
• Quarterly profit decline from ₹1,969 Cr. to ₹1,695 Cr.
• Negative DII sentiment (-0.10%)

Company Negative News

• Concerns over global iron ore price fluctuations and export restrictions

Company Positive News

• Strong domestic demand and infrastructure push supporting volume growth
• Strategic expansion in pellet and steel production capacity

Industry

• NMDC operates in the mining and iron ore production sector
• Peers include Vedanta, SAIL, and Tata Steel

Conclusion

NMDC is currently trending upward with bullish technical alignment and strong fundamentals. While volume and earnings volatility suggest caution, valuation and sector tailwinds support a positive outlook. Traders may consider entry near ₹74 with targets around ₹83, watching for MACD strength and volume recovery.