Technical Analysis

NMDC (₹113.8):Buy

Yoganand D BL Reserach Bureau | Updated on November 01, 2018 Published on November 01, 2018


The stock of NMDC gained 4.5 per cent on Thursday, moving above a key resistance level of ₹110 — the 50-day moving average. Investors with a short-term perspective can buy the stock at current levels. Following a short-term corrective downtrend, the stock retraced 61.8 per cent Fibonacci retracement level of its prior uptrend and found support at ₹105 last week. The stock subsequently bounced up, resuming the medium-term uptrend that has been in place from the July 2018 low of ₹93.5.



The recent upmove has decisively breached the 21- and 50-day moving averages and is hovering well above these levels. There has been a rise in daily volumes over the past three trading sessions. Both daily and weekly relative strength indices are featuring in the neutral region, with positive bias. Further, the daily and weekly price rate of change indicators are hovering in the positive territory, implying buying interest. The short-term outlook is bullish for the stock. It can extend the upmove and reach the price targets of ₹118.5 and ₹121 in the upcoming sessions. Traders can buy the stock with stop-loss at ₹111.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on November 01, 2018

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.