NUVAMA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.7

📊 Chart Patterns: NUVAMA is trading at 7,177 ₹, slightly above its 50 DMA (7,155 ₹) and comfortably above its 200 DMA (6,807 ₹). The chart shows a medium-term uptrend, though resistance is visible near 7,400–7,500 ₹.

📈 Moving Averages: Price is above both short- and long-term averages, confirming bullish sentiment. Sustaining above 7,150 ₹ strengthens the trend.

📉 RSI: At 53.8, RSI is neutral, suggesting balanced momentum with room for further upside.

📈 MACD: Positive (6.58), showing bullish crossover and continuation of upward momentum.

📊 Bollinger Bands: Price is near the mid-to-upper band, indicating strength but also potential short-term resistance.

📊 Volume Trends: Current volume (3.44 lakh) is significantly higher than average weekly volume (1.18 lakh), showing strong participation and buying interest.

📍 Momentum Signals: Short-term momentum is bullish with potential continuation, though resistance near 7,400–7,500 ₹ may trigger consolidation.

🎯 Entry Zone: 7,050–7,150 ₹ (near DMA support). Good accumulation zone for traders.

🎯 Exit Zone: 7,400–7,500 ₹ (near resistance). Strong resistance at 8,510 ₹ (52-week high).

🔎 Trend Status: The stock is trending upward with minor consolidation expected near resistance.

Positive

• Strong ROCE (30.6%) and ROE (32.6%) indicate efficient capital use.
• Low debt-to-equity ratio (0.19) ensures financial stability.
• Dividend yield of 2.02% provides steady returns.
• EPS of 140 ₹ supports valuation strength.
• DII holdings increased (+1.24%), showing domestic investor confidence.

Limitation

• High P/E (52.0) compared to industry average (20.7), indicating premium valuation.
• Quarterly PAT declined sharply (46.4 Cr. vs 221 Cr.), showing weakness (-85.4%).
• FII holdings decreased (-0.84%).
• Resistance near 7,400–7,500 ₹ may limit short-term upside.

Company Negative News

• Quarterly PAT dropped significantly (-85.4%).
• FII holdings declined (-0.84%).
• Stock corrected from 8,510 ₹ to 7,177 ₹.

Company Positive News

• DII holdings increased (+1.24%).
• Dividend yield of 2.02% supports investor confidence.
• Strong efficiency metrics (ROCE 30.6%, ROE 32.6%).

Industry

• Industry PE is 20.7, lower than NUVAMA’s 52.0, highlighting premium valuation.
• Financial services sector remains growth-oriented, supported by rising retail participation and market expansion.

Conclusion

✅ NUVAMA is in a bullish trend, trading above key moving averages with strong fundamentals. Efficiency metrics, dividend yield, and domestic investor support strengthen confidence, but high valuation and sharp profit decline limit upside. Traders may enter near 7,050–7,150 ₹ and exit around 7,400–7,500 ₹. Long-term investors should monitor earnings growth before committing further at premium valuations.