NSLNISP - Technical Analysis with Chart Patterns & Indicators

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

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Technical Rating: 3.2

Technical Analysis Summary

• Trend: Reversing from highs with weak momentum
• Moving Averages: Price (₹43.0) is below DMA 50 (₹43.6) but slightly above DMA 200 (₹42.1), indicating short-term weakness
• RSI (45.6): Neutral to bearish zone, suggesting lack of strength
• MACD (0.18): Mild bullish crossover, but momentum remains weak
• Bollinger Bands: Price near mid-band, indicating consolidation with downside bias
• Volume: Slightly below average (1.97 Cr. vs 2.06 Cr.), showing reduced participation

Entry & Exit Zones

• Support: ₹41 – ₹42 (near DMA 200 and recent base)
• Resistance: ₹45 – ₹47 (DMA 50 and prior swing highs)
• Optimal Entry: ₹42 – ₹43 on pullback with MACD support
• Exit Zone: ₹45 – ₹47 if price struggles near resistance

Positive

• Price up 65.2% over 52 weeks
• Book value of ₹44.4 close to current price, indicating fair valuation
• Positive FII sentiment (+0.46%)
• Debt-to-equity ratio of 0.41 reflects moderate leverage

Limitation

• Negative ROCE (-13.0%) and ROE (-16.6%) indicate poor financial efficiency
• EPS of ₹-4.51 and no dividend yield
• MACD and RSI show weak momentum
• Negative DII sentiment (-0.56%)

Company Negative News

• Recent quarterly loss of ₹115 Cr. vs previous profit of ₹25.6 Cr.
• Operational challenges and margin pressures in steel production

Company Positive News

• Improved production volumes and strategic restructuring efforts
• Government support for public sector steel enterprises

Industry

• NSLNISP operates in the steel manufacturing and infrastructure sector
• Peers include SAIL, JSW Steel, and Tata Steel

Conclusion

NSLNISP is currently reversing from its highs with weak technical indicators and limited momentum. While valuation appears fair and FII sentiment is positive, financial performance and volume trends suggest caution. Traders may consider entry near ₹42 with targets around ₹47, watching for RSI and MACD confirmation.