NUVAMA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | NUVAMA | Market Cap | 27,001 Cr. | Current Price | 1,480 ₹ | High / Low | 1,702 ₹ |
| Stock P/E | 47.6 | Book Value | 115 ₹ | Dividend Yield | 1.88 % | ROCE | 23.7 % |
| ROE | 28.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,379 ₹ | DMA 200 | 1,350 ₹ |
| Chg in FII Hold | 0.55 % | Chg in DII Hold | -0.07 % | PAT Qtr | 19.1 Cr. | PAT Prev Qtr | 280 Cr. |
| RSI | 57.2 | MACD | 45.1 | Volume | 2,28,295 | Avg Vol 1Wk | 4,97,697 |
| Low price | 1,097 ₹ | High price | 1,702 ₹ | PEG Ratio | 0.14 | Debt to equity | 0.53 |
| 52w Index | 63.3 % | Qtr Profit Var | -30.4 % | EPS | 31.2 ₹ | Industry PE | 22.6 |
📊 Chart Analysis: NUVAMA is trading at ₹1,480, above both the 50 DMA (₹1,379) and 200 DMA (₹1,350), confirming an ongoing uptrend. RSI at 57.2 reflects neutral momentum, leaving room for further upside. MACD at 45.1 shows bullish crossover strength. Bollinger Bands suggest moderate volatility with price moving toward the upper band. Current volume (2,28,295) is below the 1-week average (4,97,697), indicating reduced participation and possible consolidation.
📈 Momentum Signals: Short-term momentum is mildly bullish, supported by MACD and moving averages. RSI remains balanced, but declining volume hints at weakening momentum.
💹 Entry & Exit Zones:
- ✅ Optimal Entry: ₹1,440–₹1,460 (support near 50 DMA)
- 🚀 Target Exit: ₹1,600–₹1,620 (resistance near recent highs)
- ⚠️ Stop Loss: ₹1,400 (below short-term support)
🔎 Trend Status: The stock is trending upward but showing signs of short-term consolidation due to lower trading volumes and profit decline.
Positive
- 📌 Strong ROE (28.2%) and ROCE (23.7%) highlight efficient capital use.
- 📌 Dividend yield of 1.88% provides investor returns.
- 📌 PEG ratio of 0.14 suggests undervaluation relative to growth potential.
Limitation
- ⚠️ High P/E ratio (47.6) compared to industry average (22.6) indicates overvaluation.
- ⚠️ Debt-to-equity ratio of 0.53 is relatively high for the sector.
- ⚠️ Quarterly PAT dropped sharply (19.1 Cr vs 280 Cr), raising concerns.
Company Negative News
- 📉 Significant decline in quarterly profits (-30.4% variation).
- 📉 Lower trading volumes suggest reduced investor interest in the short term.
Company Positive News
- 📈 Institutional confidence reflected in FII holdings increase (+0.55%).
- 📈 Strong EPS of ₹31.2 supports valuation despite profit decline.
- 📈 Technical indicators still confirm bullish bias above DMA levels.
Industry
- 🏦 Industry P/E at 22.6 shows NUVAMA trades at a premium.
- 🏦 Financial services sector remains attractive with rising demand for brokerage and asset management.
Conclusion
✅ NUVAMA is in an uptrend, supported by moving averages and MACD, but faces short-term consolidation due to declining profits and lower volumes. Traders may consider entry near ₹1,440–₹1,460 with exits around ₹1,600–₹1,620, while long-term investors should weigh valuation risks against strong ROE, ROCE, and PEG ratio advantages.
Would you like me to extend this with a peer valuation comparison or a sector growth outlook to better contextualize NUVAMA’s position?