Technical Trend Overview
As of 04 Dec 2025, NHPC Ltd’s technical trend has shifted from mildly bearish to outright bearish. This change reflects growing downward momentum in the stock’s price action, suggesting that sellers are gaining control over the market sentiment. The daily moving averages reinforce this view, showing a bearish stance that often indicates the stock is trading below its average price levels, a sign of weakening demand.
Further supporting this bearish outlook, the Moving Average Convergence Divergence (MACD) indicator is bearish on the weekly timeframe and mildly bearish on the monthly scale. MACD is a momentum indicator that helps identify trend direction and strength; a bearish MACD typically signals that the stock’s short-term momentum is declining relative to its longer-term trend.
Additional Technical Indicators
The Bollinger Bands, which measure volatility and potential price extremes, are mildly bearish on both weekly and monthly charts. This suggests that NHPC’s price is closer to the lower band, indicating potential downward pressure but not yet at an extreme oversold level.
The Know Sure Thing (KST) oscillator, another momentum indicator, aligns with the bearish narrative on the weekly chart and is mildly bearish monthly. This consistency across momentum indicators strengthens the case for a cautious stance on the stock.
However, some indicators such as the Relative Strength Index (RSI) and On-Balance Volume (OBV) show no clear signals on either weekly or monthly timeframes. The RSI’s neutral reading implies that the stock is neither overbought nor oversold, while the lack of trend in OBV suggests volume is not confirming price moves decisively.
Dow Theory analysis also reports no definitive trend on weekly or monthly charts, indicating that the broader market forces affecting NHPC may be indecisive or balanced at present.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Price Performance and Volatility
NHPC Ltd’s current price stands at ₹76.80, unchanged from the previous close. The stock’s 52-week high is ₹92.30, while the 52-week low is ₹71.01, indicating a moderate trading range over the past year. Today’s intraday range has been relatively narrow, with a high of ₹77.41 and a low of ₹76.61, reflecting subdued volatility.
Despite the bearish technical signals, NHPC’s price has shown resilience over the long term. The stock has delivered a remarkable 10-year return of approximately 295%, significantly outperforming the Sensex’s 233% gain over the same period. Similarly, over five years, NHPC’s return of 251% dwarfs the Sensex’s 89% rise, highlighting the company’s strong fundamental growth and value creation for long-term investors.
However, the short-term price action paints a different picture. Over the past month, NHPC has declined by 8.7%, contrasting with the Sensex’s 2.2% gain. Year-to-date, the stock is down 4.8%, while the benchmark index has advanced 9.1%. Even over the last year, NHPC has fallen 6.3%, whereas the Sensex has risen 5.3%. These figures underscore the recent weakness in NHPC’s share price relative to the broader market.
Sector Context and Market Sentiment
Operating within the power sector, NHPC is subject to regulatory, environmental, and demand-side factors that can influence its stock performance. The sector often experiences volatility linked to policy changes, fuel costs, and infrastructure investments. The current bearish technical signals may reflect investor concerns about near-term challenges such as fluctuating power tariffs, project delays, or broader macroeconomic uncertainties impacting the energy space.
Moreover, the lack of clear volume confirmation and neutral RSI readings suggest that while selling pressure is evident, there is no overwhelming capitulation or panic selling. This could imply that investors are awaiting clearer catalysts or fundamental developments before committing to a directional move.
Holding NHPC Ltd from Power? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Investor Takeaway: Balancing Technicals with Fundamentals
For investors analysing NHPC Ltd, the current technical landscape suggests a cautious approach. The predominance of bearish indicators across multiple timeframes signals potential downside risk in the near term. The stock’s inability to sustain momentum above key moving averages and the bearish MACD and KST readings reinforce this view.
Nevertheless, the company’s impressive long-term returns relative to the Sensex highlight its underlying strength and growth potential. This divergence between technical weakness and fundamental robustness is not uncommon in cyclical or sector-sensitive stocks, where short-term market sentiment can diverge from intrinsic value.
Investors should therefore consider combining technical analysis with a thorough review of NHPC’s fundamentals, sector outlook, and macroeconomic factors before making investment decisions. Those with a longer investment horizon may view current weakness as a potential entry point, while short-term traders might prefer to wait for clearer bullish signals or confirmation of a trend reversal.
Conclusion: Predominantly Bearish Technical Outlook
In summary, NHPC Ltd’s technical indicators currently lean towards a bearish stance, with the trend having shifted from mildly bearish to bearish as of early December 2025. Key momentum and volatility indicators support this view, while volume and strength metrics remain neutral. The stock’s recent underperformance relative to the Sensex further corroborates the cautious technical outlook.
However, the company’s strong long-term performance and sector fundamentals suggest that this bearish phase may be temporary or part of a broader consolidation. Investors should monitor upcoming price action, volume trends, and sector developments closely to identify potential shifts in momentum.
Overall, NHPC Ltd is technically bearish at present, but the mixed signals and strong fundamentals warrant a balanced and well-informed investment approach.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
