Chart Check: Multibagger in making? Technicals suggest NCC value could more than double in next 2-3 quarters

NCC, part of the civil construction space, has already rallied more than 30% in the last 3 months and a break above Rs 100 could propel the stock towards Rs 190 level in the next 2-3 quarters, suggest experts.

The 14-year falling trendline resistance is placed near Rs 100, and a break above this level could open doors for the stock to hit fresh 52-week highs.

The stock has been on buyers’ radar in the past 6 months. It rose more than 30% in 3 months, and more than 60% in the last 6 months.

Various technical indicators also suggest that the trend is largely on the upside although it is trading at nearly overbought levels.

The Relative Strength Index (RSI) is at 64.1. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.

In terms of price action, the stock is trading below the 5 and 10-DMA but above 20,30,50,100 and 200-DMA which is a positive sign for the bulls.


It can be observed that post a strong first leg of the up move from the level of Rs 15.85 to Rs 99.85 (31.30.2020-31.03.2021), this stock witnessed a correction closer to 61.80% of its previous up move at Rs 52.20 level in four back-to-back quarters (30.09.2021 -30.06.2022).

“NCC has been resisting a 14-year falling trend line from the past two quarters and a break above levels of Rs 100 will trigger a strong buy in this stock,” Sujit Deodhar, Head - Technical Analyst, Wellworth Share and Stock Broking, said.

“The stock has resumed its second leg of up move from the past three quarters including the current quarter, but a trigger at Rs 100 levels will qualify NCC for a strong buy,” he said.

On the daily charts, this stock is comfortably trading above its medium-term (20 & 50 SMA) and long-term moving averages (100 & 200 SMA).

“Technical indicator MACD on quarterly charts exhibits a fresh buy above zero line supports the bullish stance,” highlights Deodhar.

“NCC is a conditional buy above Rs 100 level for a decent upside target projected at 190 levels with a holding period of 2-3 quarters post breakout and a protective stop loss to be placed at Rs 75 level on a daily close basis,” he recommends.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)