NHPC Limited (NHPC) Stock - Complete Technical Analysis - Dec 12, 2024

NHPC Limited Technical & Fundamental Analysis Support, Resistance, Trend Analysis for Traders

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 (NHPC) stock is currently trading at 85.0, with significant volatility in the last few trading sessions. Despite offering a dividend yield of 2.23%, the stock appears to be slightly overvalued with a P/E ratio of 26.9. The stocks technical indicators paint a picture of consolidation, with the RSI near 55.58, suggesting that the stock is neither overbought nor oversold. The MACD is above the zero line, implying a bullish bias, but not enough to indicate a strong upward trend.

In terms of moving averages, NHPC is trading below its key SMAs, which include the 50-day at 83.94 and the 200-day at 93.62. This suggests that the stock faces resistance at these levels, which could limit upward movement unless these resistance points are broken. Additionally, the Exponential Moving Averages (EMAs) are aligned with this, with the 10-day EMA at 84.26, providing a slight support zone.

The stock has formed a Bearish Engulfing pattern recently, which is a reversal signal. This could imply that the price may face short-term downside pressure. Traders should watch the support levels at around 82.0 to 83.0, with any breach of these levels signaling further downside. On the flip side, the stock might find some support at 84.0 to 84.5 levels if it holds steady.

The Average True Range (ATR) for NHPC stands at 2.53, indicating moderate volatility. This means that the stock is experiencing some price swings, and investors should be prepared for possible surges or drops in the near term. Given the current setup, the next few days could see the stock testing the resistance at 86.0, with potential pullbacks towards the support levels mentioned.

In summary, NHPC is showing signs of sideways action, and traders should be cautious of the Bearish Engulfing pattern and watch for any breakdowns or breakouts. The stock could face resistance around 86.0, with potential upside limited unless it clears the 88.0-90.0 region. Keep an eye on the support at 84.0, as it could act as a pivotal level in the near future.