NYKAA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | NYKAA | Market Cap | 75,811 Cr. | Current Price | 265 ₹ | High / Low | 286 ₹ |
| Stock P/E | 1,202 | Book Value | 5.98 ₹ | Dividend Yield | 0.00 % | ROCE | 6.25 % |
| ROE | 6.10 % | Face Value | 1.00 ₹ | DMA 50 | 257 ₹ | DMA 200 | 243 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | -0.01 % | PAT Qtr | 23.3 Cr. | PAT Prev Qtr | 12.2 Cr. |
| RSI | 56.2 | MACD | 4.45 | Volume | 22,06,137 | Avg Vol 1Wk | 33,81,967 |
| Low price | 188 ₹ | High price | 286 ₹ | PEG Ratio | -595 | Debt to equity | 0.08 |
| 52w Index | 78.5 % | Qtr Profit Var | -4.91 % | EPS | 0.21 ₹ | Industry PE | 38.0 |
📈 Chart Patterns: Price is trading above the 50 DMA (257 ₹) and 200 DMA (243 ₹), showing short-term strength. Trendlines suggest resistance near 270–280 ₹ and support around 255–260 ₹.
📊 Moving Averages: Current price (265 ₹) above both DMAs indicates mild bullish bias, but fundamentals remain weak.
📉 RSI: At 56.2, RSI is moderately strong, suggesting momentum but not yet overbought.
📊 MACD: Positive at 4.45, confirming bullish crossover and short-term upside potential.
📉 Bollinger Bands: Price near upper band, reflecting momentum but also risk of pullback.
📊 Volume Trends: Current volume (22.1L) below 1-week average (33.8L), showing reduced participation despite price strength.
🎯 Momentum Signals: Mildly bullish. MACD and moving averages confirm strength, but volume weakness limits conviction.
💹 Entry Zone: 255–260 ₹ (support levels).
💹 Exit Zone: 280–285 ₹ (resistance levels).
📌 Trend Status: Consolidating with mild bullish bias.
Positive
- Price trading above both 50 DMA and 200 DMA confirms short-term strength.
- MACD positive crossover supports momentum-driven trades.
- FII holdings increased (+0.25%), showing foreign investor confidence.
- PAT improved to 23.3 Cr. from 12.2 Cr., highlighting operational growth.
Limitation
- Extremely high P/E (1,202) compared to industry PE (38.0), indicating severe overvaluation.
- EPS of 0.21 ₹ is very low relative to valuation.
- Weak ROE (6.10%) and ROCE (6.25%) highlight poor capital efficiency.
- PEG ratio (-595) suggests unsustainable growth expectations.
- Volume below average, limiting breakout confirmation.
Company Negative News
- Quarterly profit variation (-4.91%) highlights earnings inconsistency.
- DII holdings declined (-0.01%), showing reduced domestic institutional support.
Company Positive News
- PAT growth quarter-on-quarter shows operational improvement.
- FII support indicates foreign investor optimism.
Industry
- Industry PE at 38.0 is far lower than NYKAA’s P/E, suggesting extreme overvaluation.
- E-commerce and retail sector remains competitive with margin pressures.
Conclusion
⚖️ NYKAA shows short-term bullish technicals with price above both 50 DMA and 200 DMA. Entry near 255–260 ₹ offers upside toward 280–285 ₹. However, fundamentals remain weak with excessive valuation, low EPS, and poor efficiency metrics. Best suited for momentum-driven trades with strict stop-loss discipline rather than long-term investment.