NUVAMA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | NUVAMA | Market Cap | 21,424 Cr. | Current Price | 1,177 ₹ | High / Low | 1,702 ₹ |
| Stock P/E | 37.2 | Book Value | 109 ₹ | Dividend Yield | 2.45 % | ROCE | 30.6 % |
| ROE | 32.6 % | Face Value | 2.00 ₹ | DMA 50 | 1,293 ₹ | DMA 200 | 1,345 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.78 % | PAT Qtr | 280 Cr. | PAT Prev Qtr | 46.4 Cr. |
| RSI | 37.7 | MACD | -43.1 | Volume | 7,25,259 | Avg Vol 1Wk | 4,09,269 |
| Low price | 914 ₹ | High price | 1,702 ₹ | PEG Ratio | 0.26 | Debt to equity | 0.19 |
| 52w Index | 33.4 % | Qtr Profit Var | 35.5 % | EPS | 31.8 ₹ | Industry PE | 17.2 |
📉 Chart & Trend: NUVAMA is trading at ₹1,177, below both 50 DMA (₹1,293) and 200 DMA (₹1,345), confirming a bearish setup. RSI at 37.7 shows weak momentum, nearing oversold territory. MACD at -43.1 indicates strong negative crossover. Bollinger Bands suggest price is near the lower band, reflecting weakness with potential for a short-term rebound.
📊 Volume: Current volume (7.25 L) is higher than the 1-week average (4.09 L), showing strong participation despite price weakness.
📈 Momentum Signals: Short-term momentum remains negative. Support levels are seen at ₹1,150–₹1,160 and strong support at ₹914 (52-week low). Resistance lies at ₹1,293–₹1,300 (50 DMA zone) and ₹1,345 (200 DMA).
🎯 Entry Zone: ₹1,150–₹1,160 (risk-managed entry zone).
🚪 Exit Zone: ₹1,293–₹1,345 (profit-taking zone near resistance).
🔎 Trend Status: Bearish consolidation. The stock is consolidating below key moving averages, struggling to regain momentum, and remains under pressure.
Positive
- Strong ROCE (30.6%) and ROE (32.6%) show excellent capital efficiency.
- Dividend yield of 2.45% adds investor appeal.
- EPS at ₹31.8 reflects consistent earnings power.
- FII holding increased by 0.09% and DII holding by 0.78%, showing institutional confidence.
Limitation
- High P/E (37.2) compared to industry average (17.2) indicates overvaluation.
- PEG ratio of 0.26 suggests growth is priced aggressively.
- Price trading below both 50 DMA and 200 DMA reflects technical weakness.
Company Negative News
- MACD at -43.1 shows bearish crossover, limiting near-term upside.
- Valuation stretched compared to industry peers.
Company Positive News
- PAT improved sharply to ₹280 Cr from ₹46.4 Cr, showing strong earnings growth.
- Quarterly profit variation at 35.5% highlights sequential improvement.
- Institutional inflows (FII and DII) reflect confidence in fundamentals.
Industry
- Industry PE at 17.2 is much lower than NUVAMA’s P/E of 37.2, suggesting relative overvaluation.
- Financial services and brokerage sector benefits from rising retail participation but faces cyclical risks tied to market volatility.
Conclusion
⚠️ NUVAMA is in a bearish consolidation phase, trading below key moving averages with weak RSI and strong negative MACD. Fundamentals show strong efficiency, dividend yield, and institutional support, but stretched valuations and technical weakness limit upside. Short-term traders may consider entries near ₹1,150–₹1,160 with exits around ₹1,293–₹1,345, while long-term investors should wait for valuation correction and stronger momentum before fresh accumulation.
Would you like me to extend this into a peer benchmarking overlay against other financial services companies like Motilal Oswal, IIFL, and Anand Rathi? That would highlight whether NUVAMA’s bearish consolidation is sector-driven or company-specific.