Chart Check: Trendline breakout on weekly charts makes NCC an attractive medium-term buy

NCC, part of the civil construction space, rallied more than 16% in a month and over 20% in the last 3 months and technical setup suggests that the rally may not be over yet, suggest experts.

The stock has seen good buying interest despite a muted trend seen in benchmark indices amid heavy selling pressure amid weak global cues. The stock hit a 52-week high of Rs 106 on 17 March 2023.

The recent momentum helped the stock to breakout from a falling trendline on the weekly charts which opens up room for it to head towards Rs 140-170 levels, suggest experts.


Medium-term investors can look at buying the stock now or on dips. It is now trading near overbought levels after the recent rally.

The Relative Strength Index (RSI) is at 73.3, Trendlyne data showed. RSI above 70 is considered overbought. This implies that stock may show pullback. MACD is above its center and signal line, this is a bullish indicator.

Technical indicators such as Aroon Up & Down, William % R & Demand Index indicate buying strength in the stock.

In terms of price action, the stock is trading well above short and long-term moving averages such as 5,10,30,50,100, and 200-DMA on the daily charts which is a positive sign for the bulls.

NCC stock price started its downtrend from Rs 142 (January 2018) to 17.20 (March 2020), making a series of lower tops & lower bottoms and was trading below averages.

Thereafter, buying followed, supported by volumes and the stock made a high of Rs 100 in February 2021. The stock corrected to 51 in June 2022.

“Buying emerged in the NCC stock backed by volumes resulting in breakouts of bullish pattern and trend line connecting January 2018 and February 2023. The stock made a high of 106 above the previous 3 swing highs,” Bharat Gala, President - Technical Research, Ventura Securities, said.

“The Aroon Up & Down, William % R & Demand Index indicates buying strength in the stock. The stock has made a positive weekly price candle (Rs 106 high), above the previous 3 swing highs,” he said.

“The possible targets are placed around Rs 140-170 in the next 6 months. If the stock price corrects downwards the buy levels are Rs 97-91-86-82-78. A stop loss to be observed in the trade is Rs 74,” recommends Gala.

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