Shares of multibagger NBCC India are consolidating in a range for the last few weeks and are likely to offer fresh entry opportunities in the near term, say analysts. The rangebound movement from Rs 170 to Rs 195 could provide a fresh breakout to the multibagger stock and push it to fresh highs, they believe. The bullish stance on the NBCC India stock comes even after the stock has risen 257% in a year and gained 459% in two years.
The Navratna PSU stock climbed over 282% from its 52 week low in a year. NBCC stock hit a record high of Rs 198.25 on July 9, 2024 and a 52 week low of Rs 48.55 on August 25, 2023.
In the current session, NBCC stock was trading on a flat note at Rs 182.50 against the previous close of Rs 181.75 on BSE. Market cap of the firm fell to Rs 32,850 crore. Total 5.77 lakh shares of the firm changed hands amounting to a turnover of Rs 10.60 crore in the current session.
Mandar Bhojane, Equity Research Analyst at Choice Broking said, "The current trading price of NBCC is Rs 181.59. The stock has been consolidating in a range of Rs 172 to Rs 197. However, there has been a significant increase in trading volume, indicating a potential breakout above the Rs 190 level. If this breakout occurs, the stock may have the potential to reach short-term targets of Rs 220 and Rs 250. On the downside, immediate support is located at Rs 170, which could be seen as a buying opportunity on dips. The Relative Strength Index (RSI) currently stands at 53.48 and is trending upward, indicating increasing buying momentum. To manage risk prudently, it is advisable to set a stop-loss (SL) at Rs 165. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, NBCC appears to present an appealing buying opportunity for those aiming for a Rs 220 and Rs 250 price target, provided that appropriate risk management measures are in place."
Aditya Agarwal, head of derivatives and technicals at Sanctum Wealth said, "NBCC is consolidating in a broad range of Rs 165-195 with no clear direction. Overall, structure for the stock remains bullish and we expect stock to move towards Rs 235/245 levels in medium to long term. However, from the short-term perspective, the stock may see minor dip towards Rs 175/170 levels and around those levels, fresh long positions can be initiated with stop loss placed below Rs 162."
Manish Shah, independent Market Analyst said, "NBCC is in a steady uptrend with a clear pattern of higher highs and higher lows. Since last couple of weeks, the price is moving in a range of Rs 195-170. Price needs to break out above Rs 195 for a confirmed entry signal. On the upside, the price is likely to see a rally to Rs 220 and above at to Rs 250. Investors should monitor the price of NBCC and enter on a break above Rs 195. One can keep a protective stop loss below Rs 170."
The multibagger stock saw high volatility with a beta of 1.5 during the period. In terms of technicals, the relative strength index (RSI) of the Navratna firm’s stock stands at 53.5, signaling it's trading neither in the overbought nor in the oversold zone. NBCC shares are trading higher than the 5 day, 10 day 20 day, 50 day, 100 day, 150 day, and 200 day moving averages.
NBCC (India) Limited provides value added services. The company operates through three segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). PMC segment is engaged in civil construction projects, infrastructure works for the national security, infrastructure projects for the civil sector, and project implementation for Pradhan Mantri Gram Sadak Yojna (PMGSY) and developmental work in Northeastern Region.