The technical and derivative data for NBCC indicates a breakout from a downward-sloping trendline, leading analysts to recommend accumulating the stock to capitalize on its upward trajectory.
As of 9:37 am on January 4, NBCC stock is trading at Rs 88.75, up 0.75 points or 0.85 percent.
Sudeep Shah, Head of Derivatives and Technical Research at SBI Securities, stated, "On Wednesday, NBCC (India) exhibited a downward sloping trendline breakout. This significant development was accompanied by a notable surge in trading volume, exceeding four times the 50-day average volume. The 50-day average volume, typically at 2.90 crore, was surpassed by a substantial total volume of 12.48 crore on Wednesday, indicating robust buying interest among market participants."
"Furthermore, the breakout was reinforced by the formation of a substantial bullish candle on the breakout bar, adding strength to the upward momentum," he added.
Shah highlighted that the stock is currently trading at its 52-week high, and various indicators, including moving averages and momentum-based setups, signal a continuation of bullish momentum. Both the daily and weekly Relative Strength Index (RSI) are situated in a super bullish zone, aligning with the RSI range shift rules. Additionally, volume-based indicators such as On-Balance-Volume (OBV) and Money Flow Index are portraying significant strength, supporting the optimistic outlook for the stock.
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These technical factors align in favor of bulls. Therefore, Shah recommends accumulating the stock in the zone of Rs 89-87 with a stop loss of 84. On the upside, it is likely to test the level of Rs 93, followed by 96 in the short term."
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