NSLNISP - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.4

📊 Chart Patterns: NSLNISP is trading at 40.1 ₹, below both 50 DMA (42.1 ₹) and 200 DMA (42.0 ₹). The chart shows weakness with a downward bias and failed attempts to hold above moving averages.

📈 Moving Averages: Current price is below both short- and long-term averages, confirming bearish sentiment.

📉 RSI: At 36.8, RSI is weak and close to oversold territory, suggesting limited downside but no strong rebound signals.

📉 MACD: Negative (-0.77), showing bearish crossover and continuation of weakness.

📊 Bollinger Bands: Price is near the lower band, indicating selling pressure and possible volatility squeeze.

📊 Volume Trends: Current volume (21.8 lakh) is higher than average weekly volume (17.1 lakh), showing increased selling activity and heightened volatility.

📍 Momentum Signals: Short-term momentum is bearish. RSI suggests possible consolidation near support but no strong reversal yet.

🎯 Entry Zone: 38–40 ₹ (near support). Suitable only for speculative short-term trades with strict risk management.

🎯 Exit Zone: 42–44 ₹ (near 50 DMA and 200 DMA resistance). Strong resistance at 42 ₹.

🔎 Trend Status: The stock is reversing downward and currently in a bearish phase with weak consolidation attempts.

Positive

• Book value of 44.4 ₹ is slightly above current price, offering some valuation cushion.
• FII holdings increased (+0.46%), showing marginal foreign investor interest.
• Debt-to-equity ratio at 0.41 is moderate, not excessive.

Limitation

• Negative ROCE (-13.0%) and ROE (-16.6%) indicate poor efficiency and weak returns.
• No dividend yield (0.00%), reducing investor appeal.
• EPS is negative (-4.51 ₹), reflecting losses.
• Price trading below both 50 DMA and 200 DMA.

Company Negative News

• Quarterly PAT turned negative (-115 Cr.) compared to previous profit (25.6 Cr.).
• DII holdings declined (-0.56%).
• Stock corrected from 49.6 ₹ to 40.1 ₹.

Company Positive News

• FII holdings increased (+0.46%).
• Quarterly profit variation shows volatility (+80.7%), though currently negative.

Industry

• Industry PE is 20.9, but NSLNISP has no meaningful P/E due to losses.
• Steel and metals sector remains cyclical, sensitive to demand and global commodity prices.

Conclusion

⚠️ NSLNISP is in a bearish trend, trading below key moving averages with weak RSI and negative earnings. Fundamentals remain poor with negative profitability and no dividend support. Short-term traders may attempt speculative entries near 38–40 ₹ with exits around 42–44 ₹, but long-term investors should avoid until profitability stabilizes and the stock sustains above 200 DMA.