Navratna PSU NBCC Poised For Rally, Axis Momentum Signals 23% Upside; Watch After Breakout

The BSE saw a 4.10% rise in the price of NBCC (India) shares on Friday, closing at Rs 111.11 a share, with a market value of Rs 29,999.70 Cr. Over the past five sessions, the stock of Navratna PSU has gone up by 14.85%. The week witnessed substantial trading volumes, indicating heightened investor interest, with top trading volumes witnessed on May 12 with 17.8 million shares traded, May 14 with volume peaking at 32.5 million shares, and May 16 with 27.4 million shares changing hands. However, Axis Securities believes that there is still more positive momentum in the stock because the brokerage has recommended buying NBCC (India) Ltd. (NBCC) with a target price of Rs. 123-129, which represents a 17%-23% upside. Taking the CMP of Rs. 110 into account, the stock's buying range is Rs. 107-103.

NBCC Share Price Target

CMP: Rs 110, Buy range: Rs 107-103, Target: Rs 123-129, Trend Reversal: Rs 96, Upside: 17%-23%

"NBCC has staged a breakout above the neckline of an Inverted head and shoulders pattern on the weekly chart, marking the onset of a medium-term uptrend. The breakout is accompanied by a strong bullish candle and a noticeable surge in volume, reinforcing the credibility of the pattern and highlighting active market participation," suggest the technical research analysts of Axis Securities.

"The Weekly Relative Strength Index (RSI) has crossed above its reference line and is sustaining above the 50 level, indicating a strengthening of bullish momentum. Additionally, the RSI has broken above a downward-sloping trendline, further validating the positive bias in price action. Following the successful breakout, the stock is well-positioned to continue its upward journey towards the recent swing high, with potential targets at the 123 and 129 levels in the near term," Axis Securities further recommended.

NBCC News

At Aspire Silicon City, PH-IV, Sec-76, Noida, U.P., NBCC (India) Limited successfully sold 446 residential units through an e-auction on Friday, May 16th, with a total transaction value of approximately Rs. 1,467.93 crores. A marketing fee equal to 1% of the sale price will be paid to NBCC.

On the same day, the company said that M/s NBCC Overseas Real Estate LLC had been established in Dubai Mainland, United Arab Emirates, as a wholly owned subsidiary of NBCC (India) Limited. The subsidiary has been incorporated for buying and selling of real estate in Dubai Mainland as per NBCC.

About NBCC India

A Navratna Central Public Sector Enterprise (CPSE), NBCC (India) Limited is a part of the Ministry of Housing and Urban Affairs, Government of India. With a diverse portfolio that includes Project Management Consultancy (PMC), Engineering Procurement and Construction (EPC), and Real Estate (RE), it is a significant participant in the Indian construction industry.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.