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NMDC Technical Analysis #72: Sell | Target Rs 105 | Arijit Banerjee

OUR RECOMMENDATION

CMP#113.55
IdeaSELL
Sell Range116 – 113
Target105 – 100
StopLoss*118
Duration15 – 20 Trading Sessions
Potential Return^8 – 12%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
113.55SELL116 – 113105 – 10011815 – 20 Trading Sessions8 – 12%

# CMP on July 22, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 109.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

NMDC Limited explores and produces iron ore in India. The company also explores gold, coal, iron ore, copper, sponge iron, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands etc. The Indian government owns a majority share of the company.

Stock Data
NSE CodeNMDC
Sectoral IndexNifty Metal
52W High159.9
52W Low88.6
Face Value1
Relative Performance_NMDC vs Nifty Metal Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • The stock price has been trading in sideways range in the last 1 year and was showing a lack of strength to breakout upper or lower boundaries during this period.
  • Presently, the stock price has placed near the Upper bound of a sideways range and based on historical price pattern we are expecting the price to fall off from here.
NMDC Weekly Chart
NMDC Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • RSI have formed negative divergence on the daily chart, a negative divergence happens when the price of a security is in an uptrend and an indicator like relative strength index (RSI)—heads downwards, which indicates loss of buying momentum and a possible rise of the trend reversal.
NMDC Daily Chart
NMDC Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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