NYKAA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | NYKAA | Market Cap | 69,572 Cr. | Current Price | 243 ₹ | High / Low | 286 ₹ |
| Stock P/E | 1,103 | Book Value | 5.98 ₹ | Dividend Yield | 0.00 % | ROCE | 6.25 % |
| ROE | 6.10 % | Face Value | 1.00 ₹ | DMA 50 | 256 ₹ | DMA 200 | 240 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.37 % | PAT Qtr | 23.3 Cr. | PAT Prev Qtr | 12.2 Cr. |
| RSI | 40.7 | MACD | -5.39 | Volume | 50,30,814 | Avg Vol 1Wk | 53,29,371 |
| Low price | 160 ₹ | High price | 286 ₹ | PEG Ratio | -546 | Debt to equity | 0.08 |
| 52w Index | 66.2 % | Qtr Profit Var | -4.91 % | EPS | 0.21 ₹ | Industry PE | 39.7 |
📉 Chart & Trend: NYKAA is trading at ₹243, below its 50 DMA (₹256) but slightly above the 200 DMA (₹240). This indicates short-term weakness with mild long-term support. The stock is in a consolidation-to-downtrend phase.
📊 Momentum Indicators:
- RSI at 40.7 shows weak momentum, leaning towards oversold territory.
- MACD at -5.39 confirms bearish crossover.
- Bollinger Bands: Price is near the lower band, suggesting oversold conditions but no reversal yet.
- Volume is slightly below average (50,30,814 vs 53,29,371), showing reduced participation.
📈 Support & Resistance:
- Immediate support: ₹240 zone (200 DMA).
- Strong support: ₹160 (52-week low).
- Resistance zones: ₹256 (50 DMA) and ₹286 (recent high).
- Optimal entry: ₹235–245 near support.
- Exit zone: ₹255–270 if rebound occurs.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting breakout above 50 DMA for reversal confirmation.
Positive
- DII holding increased by +0.37%, reflecting domestic institutional support.
- PAT improved to ₹23.3 Cr from ₹12.2 Cr, showing growth momentum.
- Strong 52-week index performance (+66.2%) highlights resilience despite volatility.
Limitation
- Extremely high P/E of 1,103 compared to industry PE of 39.7 suggests severe overvaluation.
- Book value of ₹5.98 is very low relative to current price, limiting margin of safety.
- ROCE (6.25%) and ROE (6.10%) are weak, showing poor capital efficiency.
- PEG ratio of -546 indicates distorted valuation relative to growth.
Company Negative News
- FII holding decreased by -0.39%, showing reduced foreign investor confidence.
- Quarter profit variation (-4.91%) indicates earnings volatility.
Company Positive News
- DII holding increased by +0.37%, reflecting domestic institutional confidence.
- PAT growth from ₹12.2 Cr to ₹23.3 Cr shows operational improvement.
Industry
- E-commerce and retail sector is growth-oriented but highly competitive.
- Industry PE at 39.7 is far lower than NYKAA’s PE (1,103), highlighting valuation concerns.
Conclusion
📌 NYKAA is technically weak, consolidating below its 50 DMA with bearish momentum. Entry is favorable around ₹235–245 with stop-loss below ₹230. Short-term rebound may target ₹255–270, but sustained breakout requires volume confirmation. Fundamentally challenged with extreme valuation and weak ROCE/ROE, making it risky despite growth in PAT and strong domestic institutional support.
Would you like me to extend this into a peer benchmarking overlay against other e-commerce and retail players like Zomato, Paytm, and Delhivery to highlight relative strength and sector rotation opportunities?