Discussions

NMDC LTD. stock discussion

Aug 27

### **Stock Research Report: NMDC Ltd**

---

**Technical Parameters:**

- **Current Market Price (CMP):** ₹229.54
- **Buy Zone:** ₹236-₹243
- **Target 1:** ₹289
- **Stop Loss:** ₹209
- **Time Frame:** 6-7 Weeks

---

**Technical Analysis:**

- **Current Price Action:** NMDC Ltd is currently trading at ₹229.54, slightly below the recommended buy zone of ₹236-₹243. This price level indicates that the stock has not yet reached the optimal entry range. Investors should wait for the stock to enter the buy zone before making a purchase.

- **Trend and Momentum:** The stock is exhibiting signs of potential upward momentum. Historical data and technical indicators suggest that once the stock reaches the buy zone, it is likely to experience positive movement towards the target price.

- **Support and Resistance Levels:**
- **Support Level:** ₹209 – This level has historically served as a critical support point where the stock tends to find buying interest. Setting a stop loss at ₹209 helps manage risk by limiting potential losses if the stock’s performance deteriorates.
- **Resistance Level:** ₹289 – While specific resistance levels are not detailed, the target price of ₹289 implies significant upside potential from the current market price. This target is based on technical analysis and projected price trends.

#### **Rationale for Recommendation:**

- **Buy Zone:** The recommended entry point is between ₹236 and ₹243. This range is identified based on technical analysis, where the stock is expected to show stronger performance and align with bullish trends.

- **Target 1:** ₹289 – This target reflects a notable potential gain from the current price level. It is derived from technical projections and anticipated resistance levels, indicating substantial upside potential.

- **Stop Loss:** ₹209 – A stop loss at this level is crucial for risk management. It provides a protective measure against significant declines and ensures that losses are minimized if the stock does not perform as expected.

- **Time Frame:** The anticipated time frame for reaching the target is 6-7 weeks. This period is based on historical price movement patterns and the expected duration for the stock to achieve the target.

---

**Summary:** NMDC Ltd, currently at ₹229.54, should be considered for purchase once it reaches the buy zone of ₹236-₹243. With a target price of ₹289 and a stop loss set at ₹209, the stock offers a favorable risk-reward profile. Investors can expect to see the target price reached within 6-7 weeks.