NHPC Limited (NHPC) Stock - Complete Technical Analysis - Sep 24, 2024

NHPC Limited Stock Analysis Support & Resistance Is a Breakout Coming Soon

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. NHPC Limited is currently trading at 93.46, which places it significantly below its 52-week high of 118.4, showing a 21.06% decline from that peak. At the same time, the stock has gained 93.10% from its 52-week low of 48.4. This indicates that NHPC has shown considerable recovery over the past year, but it is facing resistance near recent highs.

Technically, the stock is in a consolidative phase, with an inside candle pattern identified on 20th September 2024. The stock has been trading within a narrow range between 96.2 and 91.8 for the last three days, which could suggest indecision among traders. This pattern often signals a potential breakout, so traders should watch for movement outside of this range.

From a momentum perspective, the RSI is hovering around 41.59, which places the stock in the lower end of the neutral zone, indicating that there's room for an upward move but momentum remains weak. MACD is in the negative territory, confirming a bearish bias in the short term. However, the ADX at 26.28 suggests that the trend is not very strong, so we may see some sideways movement before any decisive move.

The stock is also trading below key short-term moving averages, such as the 10-day, 20-day, and 30-day EMAs, indicating continued pressure on the price. However, the 200-day EMA at 89.32 is providing solid support, which could act as a safety net for the stock in the near term.

Momentum indicators like the Awesome Oscillator and Williams %R are showing negative sentiment, while the Stochastic levels are slightly oversold. This combination points to a potential reversal if there's any positive momentum in the market.

In summary, NHPC is facing resistance in the 95-96 range, and a breakout above this level could signal further upside. Support is seen around the 89-91 levels. Traders should monitor volume and momentum closely for any breakouts from the current range. Long-term investors might consider holding the stock, while short-term traders could look for opportunities in case of a breakout or a dip near support levels.