NYKAA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📉 NYKAA is currently consolidating with weak momentum. Entry near 240–245 ₹ may offer a better risk-reward setup, while resistance lies around 265–270 ₹.

📈 Technical Analysis

• 📊 Chart Pattern: The stock is moving sideways after a recent pullback, forming a consolidation base between 240 ₹ and 268 ₹.
• 📉 Moving Averages: Price is slightly above the 50-DMA (244 ₹) and well above the 200-DMA (213 ₹), suggesting medium-term strength but short-term indecision.
• 📉 RSI (46.1): Neutral zone, indicating lack of strong momentum in either direction.
• 📈 MACD (3.00): Positive crossover, hinting at early bullish momentum, though not yet strong.
• 📉 Bollinger Bands: Price near mid-band with narrowing bands, suggesting low volatility and potential breakout setup.
• 📉 Volume Trend: Current volume (43.9L) is below 1-week average (50.8L), indicating weak participation.

📍 Entry & Exit Zones

• ✅ Entry Zone: 240 ₹ – 245 ₹ (near 50-DMA and support zone)
• 🚪 Exit Zone: 265 ₹ – 270 ₹ (resistance from recent highs)

📊 Trend Status

• 🔄 Current Trend: Consolidating
• ⚠️ Bias: Neutral to mildly bullish if MACD sustains and RSI crosses 50

✅ Positive

• Price trading above both 50-DMA and 200-DMA — a sign of medium-term strength.
• MACD crossover suggests potential for short-term upside.
• FII and DII holdings increased by 0.91% and 1.35% respectively — institutional interest is growing.

⚠️ Limitation

• Extremely high P/E (1,048) and negative PEG (-519) indicate severe overvaluation.
• Weak ROCE (6.25%) and ROE (6.10%) reflect inefficient capital use.
• Volume below average — lack of strong conviction in current price action.

📉 Company Negative News

• Quarterly PAT dropped from 14.6 Cr. to 12.9 Cr., a 69.4% decline in profit growth.

📈 Company Positive News

• Despite weak earnings, the stock has held above key moving averages, indicating underlying support.

🏭 Industry

• E-commerce and beauty retail sector remains competitive with high growth expectations.
• NYKAA trades at a massive premium to industry PE (30.2), reflecting speculative valuation.

🧾 Conclusion

• NYKAA is consolidating with weak momentum and overvaluation concerns.
• Short-term traders may consider entries near 240 ₹ and exits near 270 ₹.
• Long-term investors should monitor earnings consistency and valuation compression before adding exposure.

Sources: Dhan Technicals

Dhan

, TopStockResearch

TSR

, TradingView NYKAA

TradingView

.