NUVAMA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | NUVAMA | Market Cap | 22,672 Cr. | Current Price | 1,246 ₹ | High / Low | 1,702 ₹ |
| Stock P/E | 39.4 | Book Value | 109 ₹ | Dividend Yield | 2.32 % | ROCE | 30.6 % |
| ROE | 32.6 % | Face Value | 2.00 ₹ | DMA 50 | 1,411 ₹ | DMA 200 | 1,375 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.78 % | PAT Qtr | 280 Cr. | PAT Prev Qtr | 46.4 Cr. |
| RSI | 32.9 | MACD | -41.2 | Volume | 19,76,353 | Avg Vol 1Wk | 10,49,833 |
| Low price | 914 ₹ | High price | 1,702 ₹ | PEG Ratio | 0.27 | Debt to equity | 0.19 |
| 52w Index | 42.2 % | Qtr Profit Var | 35.5 % | EPS | 31.8 ₹ | Industry PE | 19.1 |
📊 Chart & Trend Analysis:
NUVAMA is trading at ₹1,246, well below its 50 DMA (₹1,411) and 200 DMA (₹1,375), indicating short-term weakness. RSI at 32.9 suggests the stock is approaching oversold territory. MACD at -41.2 shows a strong bearish crossover, confirming downward bias. Bollinger Bands place price near the lower band, reflecting selling pressure. Current volume (19.7 lakh) is higher than the 1-week average (10.5 lakh), showing strong participation during the decline.
📈 Momentum Signals:
- RSI near oversold zone, potential for short-term rebound.
- MACD strongly negative, confirming bearish momentum.
- Price below both 50 & 200 DMA indicates weakness.
- High volume suggests strong activity, likely profit booking.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹1,220 – ₹1,250 (near support, oversold RSI).
- Exit Zone: ₹1,380 – ₹1,420 (resistance at 200 DMA).
- Stop Loss: ₹1,180 (below key support).
📌 Trend Status: The stock is reversing downward from recent highs, showing bearish bias but oversold conditions may trigger a short-term bounce.
Positive
- Strong ROCE (30.6%) and ROE (32.6%) highlight efficient capital use.
- Dividend yield of 2.32% provides attractive income for investors.
- Quarterly PAT surged to ₹280 Cr. from ₹46.4 Cr., showing robust growth (+35.5%).
- EPS of ₹31.8 reflects solid earnings base.
- FII holding increased (+0.09%) and DII holding increased (+0.78%), showing institutional confidence.
- PEG ratio of 0.27 indicates attractive valuation relative to growth.
Limitation
- Stock trading below both 50 DMA and 200 DMA reflects weak technical strength.
- High P/E (39.4) compared to industry average (19.1) suggests overvaluation.
- RSI near oversold levels highlights strong selling pressure.
Company Negative News
- MACD strongly negative, signaling bearish momentum.
- High valuation may limit upside in the near term.
Company Positive News
- Quarterly profit growth of 35.5% signals strong operational performance.
- Institutional support increased from both FII and DII investors.
- Dividend yield remains attractive compared to peers.
Industry
- Industry P/E at 19.1 is lower than NUVAMA’s P/E (39.4), suggesting relative overvaluation.
- Financial services sector remains resilient, supported by rising retail participation and capital market activity.
Conclusion
⚖️ NUVAMA is reversing downward with bearish bias, trading below key moving averages and showing weak momentum. While fundamentals remain strong with profit growth, high ROE/ROCE, and institutional support, valuations are stretched. Short-term traders may consider entry near ₹1,220–₹1,250 with exits around ₹1,380–₹1,420, while long-term investors should wait for valuation correction and stronger technical confirmation before fresh accumulation.