NSLNISP - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.3

Here’s a detailed technical breakdown of NMDC Steel Ltd. (NSLNISP) based on current indicators and price action

📉 Trend Analysis

Current Trend: Bearish and Reversing

Price is below both 50-DMA (₹38.7) and 200-DMA (₹41.2), indicating sustained downward pressure.

RSI at 26.9 is deep in oversold territory, suggesting potential for a short-term bounce.

MACD at -0.65 confirms bearish momentum with a negative crossover.

📊 Moving Averages

Indicator Value Signal

50-DMA ₹38.7 Resistance

200-DMA ₹41.2 Resistance

Price ₹36.2 Below both MAs (bearish)

Price action below key averages confirms a downtrend. Reclaiming ₹39+ would be the first sign of recovery.

📈 Momentum Indicators

RSI (14): 26.9 → Oversold; potential for technical rebound.

MACD: -0.65 → Bearish crossover; momentum still weak.

Volume: 15.99L vs 1-week avg of 15.97L → Flat; no surge in buying interest.

📉 Bollinger Bands

Price is hugging the lower band, reinforcing oversold conditions.

No squeeze pattern; volatility remains elevated.

📌 Support & Resistance Levels

Level Price Zone

Support 1 ₹35.5

Support 2 ₹33.2

Resistance 1 ₹38.7 (50-DMA)

Resistance 2 ₹41.2 (200-DMA)

Entry Zone: ₹35–₹36.2 (oversold bounce setup)

Exit Zone: ₹38.5–₹41.5 (resistance zone)

🔍 Chart Pattern & Price Action

Price action shows a descending channel with lower highs and lower lows.

No bullish reversal pattern yet; trendlines slope downward.

A break above ₹39 with volume could signal a short-term reversal.

⚠️ Conclusion

Technical Outlook: Bearish with oversold bounce potential

Momentum: Weak, but RSI suggests a possible short-term recovery

Suggested Strategy: Speculative entry near ₹35 with tight stop-loss; exit near ₹39–₹41 if bounce materializes

Risk Level: High (due to negative ROE/ROCE and persistent losses)

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