NUVAMA - Technical Analysis with Chart Patterns & Indicators

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

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Technical Rating: 4.2

Technical Analysis Summary

• Trend: Trending upward with strong momentum
• Moving Averages: Price (₹7,099) is above both DMA 50 (₹6,917) and DMA 200 (₹6,629), confirming bullish alignment
• RSI (58.3): Bullish zone, with room before overbought territory
• MACD (185): Strong bullish crossover, supporting continued upside
• Bollinger Bands: Price near upper band, indicating strength but potential short-term resistance
• Volume: Below average (1.07L vs 2.41L), suggesting cautious participation

Entry & Exit Zones

• Support: ₹6,900 – ₹7,000 (DMA 50 and recent base)
• Resistance: ₹7,400 – ₹7,600 (intermediate resistance before 52-week high)
• Optimal Entry: ₹7,000 – ₹7,100 on pullback with MACD support
• Exit Zone: ₹7,400 – ₹7,600 if price stalls near resistance

Positive

• Strong ROCE (30.6%) and ROE (32.6%) indicate excellent capital efficiency
• EPS of ₹216 and attractive dividend yield of 1.98%
• PEG ratio of 0.23 suggests undervaluation relative to growth
• Quarterly PAT surge of 376% (₹221 Cr. vs ₹27.5 Cr.)

Limitation

• High P/E of 33.1 vs industry average of 17.1
• Volume below average, indicating weak conviction in current rally
• Decline in FII holding (-0.84%) may reflect cautious foreign sentiment

Company Negative News

• Concerns over valuation and volatility in financial services sector

Company Positive News

• Strong earnings momentum and expansion in wealth management and institutional broking
• Positive DII sentiment (+1.24%) and improving operational metrics

Industry

• NUVAMA operates in the financial services and capital markets sector
• Peers include Motilal Oswal, IIFL, and ICICI Securities

Conclusion

NUVAMA is currently trending upward with strong technical indicators and robust fundamentals. While valuation and volume trends suggest caution, earnings momentum and institutional interest support a bullish outlook. Traders may consider entry near ₹7,000 with targets around ₹7,600, watching RSI and MACD for signs of continuation or exhaustion.