Analysis of NBCC (India) Limited ChartOverview:
The daily price chart of NBCC (India) Limited indicates a recovery phase after a significant correction from its 2024 highs. Key support and resistance levels are identified, along with a potential pattern that suggests consolidation followed by a breakout.
Key Observations:
1.Trend Analysis:
The stock was previously trading within an ascending channel, marked by higher highs and higher lows, indicating a bullish trend until August 2024.
Post-August, the stock broke below the channel, resulting in a sharp correction of approximately -30%.
2.Support Levels:
₹84.25: Strong support zone, as highlighted by multiple touches and a bounce from this level. It acted as a demand zone during the correction.
The stock formed a short-term base in the ₹84–₹90 range, leading to the current recovery.
3.Resistance Levels:
₹102.10: Immediate resistance, corresponding to the 100-day moving average (acting as a dynamic resistance).
₹111.44: The next major resistance from previous highs and the upper boundary of the consolidation zone.
4.Potential Pattern Formation:
A possible W-shaped reversal pattern is forming. If the stock sustains above ₹93.09 (mid-level support) and breaks ₹102.10, the next target could be ₹111.44.
The pattern suggests a consolidation phase before a potential breakout above ₹111.44.
5.Volume and RSI Analysis:
Volume: Increased buying interest near the ₹84 zone, indicating accumulation.
RSI: Currently recovering from oversold levels, indicating improving bullish momentum.
6.News Catalysts:
The Housing and Urban Development tie-up to develop a land parcel in Noida could provide a fundamental boost, aiding positive price action.
Projection and Strategy:
Bullish Scenario: Sustained breakout above ₹102.10 may lead to ₹111.44 and beyond. Traders could consider this level as a pivot point for long positions.
Bearish Scenario: Failure to hold ₹93.09 may lead to a retest of ₹84.25, where buyers could step in again.
Conclusion:
The stock is in a recovery phase, supported by strong fundamentals and technical patterns. Traders and investors should monitor key levels like ₹93.09 (support) and ₹102.10 (resistance) for confirmation of further trends.
