NYKAA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.2

📊 Chart Patterns & Trend: NYKAA is trading below its 50 DMA (253 ₹) but above the 200 DMA (226 ₹). Support lies around 240–245 ₹, while resistance is seen near 255–260 ₹. The stock is in a bearish reversal phase with weak momentum signals.

📈 Moving Averages: Current price (249 ₹) is below the 50 DMA, showing short-term weakness, but still above the 200 DMA, indicating long-term support.

📉 RSI: At 33.8, RSI suggests oversold conditions, signaling potential accumulation zones.

📉 MACD: Negative (-3.54) reflects bearish momentum, though a crossover could indicate reversal if buying volume increases.

📊 Bollinger Bands: Price is near the lower band, implying limited downside and potential rebound.

📊 Volume Trends: Current volume (52.7 lakh) is below the 1-week average (60.7 lakh), showing reduced participation and weak momentum.

🎯 Entry Zone: 240–245 ₹ (near support and oversold RSI)

🎯 Exit Zone: 255–260 ₹ (near resistance and upper band)

Positive

• DII holdings increased by 1.35%, reflecting strong domestic institutional confidence.
• FII holdings also increased by 0.91%, showing foreign investor interest.
• 52-week performance index at 79.5% shows resilience compared to broader market.

Limitation

• Extremely high P/E (1,109) compared to industry average (42.2) suggests severe overvaluation.
• Low ROCE (6.25%) and ROE (6.10%) highlight weak capital efficiency.
• No dividend yield (0.00%) reduces income appeal for investors.
• PEG ratio (-549) indicates poor alignment between growth and valuation.

Company Negative News

• Quarterly PAT declined from 12.9 Cr. to 12.2 Cr., reflecting -24.2% variation.
• EPS at 0.22 ₹ is very low relative to valuation.

Company Positive News

• Institutional confidence is strong with both FII and DII holdings increasing.
• Stock trading above 200 DMA shows long-term support intact despite short-term weakness.

Industry

• Industry P/E at 42.2 indicates sector is moderately valued compared to NYKAA’s extreme valuation.
• E-commerce and retail sector demand expected to remain strong with digital adoption trends.

Conclusion

⚖️ NYKAA is in a bearish reversal phase with oversold RSI and weak momentum. Entry near 240–245 ₹ offers favorable risk-reward, while exits around 255–260 ₹ are optimal. Watch for MACD crossover and volume recovery to confirm a rebound from current weakness. High valuation remains a significant concern despite institutional support.