NMDC Trend Analysis

Can this public sector company beat its private sector rivals in ROI?

Technically price has just bounced off from support and closed as bullish pin bar on weekly TF at the top 25% level which is considered highly bullish.

Broader pattern shows Cup with Handle formation as highlighted.

Good to buy at CMP or accumulate around 95-110 levels for the following targets:

Medium term swing target @ 188 (82.5% ROI with 4.72 R:R)

Medium term positional target @ 240 (133% ROI with 7.6 R:R)

Long term positional target @ 330 (220% ROI with 12.6 R:R)

Stop loss @ 85

Strong fundamentals with highest ever net profit YOY.

High capex because of commissioning of new steel plant (will be operational soon), for slurry pipeline and for third screening plant.

Demerger with Nagarnar Steel Plant which will take about 3 months.

NMDC is not in export market, hence there is no ‘direct impact’ as such on Imposition of 50% export duty on iron ore and 45% on pellets.

Demand is not an issue for NMDC as its top three customers account for 70% of the produced ore, with the balance taken up by Chhattisgarh DRI plants who are dependent on NMDC ore.

Do your own due diligence before taking any action.


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