⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NYKAA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | NYKAA | Market Cap | 67,846 Cr. | Current Price | 237 ₹ | High / Low | 273 ₹ |
| Stock P/E | 1,056 | Book Value | 5.98 ₹ | Dividend Yield | 0.00 % | ROCE | 6.25 % |
| ROE | 6.10 % | Face Value | 1.00 ₹ | DMA 50 | 251 ₹ | DMA 200 | 232 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.37 % | PAT Qtr | 12.2 Cr. | PAT Prev Qtr | 12.9 Cr. |
| RSI | 37.3 | MACD | -5.50 | Volume | 19,72,473 | Avg Vol 1Wk | 58,04,245 |
| Low price | 155 ₹ | High price | 273 ₹ | PEG Ratio | -523 | Debt to equity | 0.08 |
| 52w Index | 69.4 % | Qtr Profit Var | -24.2 % | EPS | 0.22 ₹ | Industry PE | 49.0 |
📈 Technical Analysis
- Chart Patterns: Stock corrected from 273 ₹ highs and is consolidating near 237 ₹, showing weakness but holding above 155 ₹ support.
- Moving Averages: Current price (237 ₹) is below 50 DMA (251 ₹) but slightly above 200 DMA (232 ₹), indicating short-term bearishness with long-term stability.
- RSI: At 37.3, the stock is close to oversold territory, suggesting potential for a rebound.
- MACD: Negative (-5.50), confirming bearish momentum persists.
- Bollinger Bands: Price is near the lower band, signaling oversold conditions but risk of breakdown.
- Volume Trends: Current volume (19,72,473) is significantly lower than 1-week average (58,04,245), showing weak participation.
📊 Momentum & Signals
- Short-Term Momentum: Weak, but oversold RSI could trigger a bounce.
- Support Zones: 230 ₹ (near-term), 210 ₹ (major support).
- Resistance Zones: 251 ₹ (50 DMA), 260 ₹ (trendline resistance), 273 ₹ (recent high).
- Entry Zone: 230–240 ₹ if RSI stabilizes.
- Exit Zone: 251–260 ₹ on rebound; strict stop-loss below 230 ₹.
- Trend Status: Stock is consolidating after correction, awaiting breakout direction.
✅ Positive
- DII holdings increased (+0.37 %), showing domestic institutional support.
- Stock trading slightly above 200 DMA (232 ₹) indicates long-term support.
- Strong 52-week performance (+69.4 %) highlights investor interest.
⚠️ Limitation
- Stock trading below 50 DMA indicates weak short-term technical strength.
- Extremely high P/E (1,056) compared to industry PE (49.0) suggests severe overvaluation.
- Low ROCE (6.25 %) and ROE (6.10 %) highlight weak capital efficiency.
- No dividend yield (0.00 %) offers no income support.
📉 Company Negative News
- Quarterly PAT declined (12.2 Cr. vs 12.9 Cr.), showing earnings pressure.
- Quarterly profit variance (-24.2 %) highlights declining profitability.
- FII holdings decreased (-0.39 %), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.37 %), showing domestic institutional confidence.
- Stock has delivered strong 52-week returns (+69.4 %), outperforming many peers.
🏭 Industry
- Industry PE at 49.0 is far lower than company PE (1,056), suggesting NYKAA trades at a massive premium.
- E-commerce and retail sector outlook remains positive with strong demand growth, but valuations are stretched.
🔎 Conclusion
- NYKAA is in a consolidation phase after correction, with oversold RSI and weak MACD.
- Short-term traders may consider entry near 230–240 ₹ with exit around 251–260 ₹.
- Long-term investors should be cautious due to extreme valuations, weak ROCE/ROE, and declining profits, despite strong sector outlook and institutional support.