NCC Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

As of 24 Feb 2026, NCC Ltd’s share price closed at ₹149.80, marginally up from the previous close of ₹149.00. The stock traded within a narrow intraday range, hitting a high of ₹151.55 and a low of ₹148.50. This price action comes against the backdrop of a 52-week high of ₹242.00 and a low of ₹136.00, indicating that the current price remains significantly below its annual peak, reflecting ongoing pressure on the stock.

The technical trend has shifted from bearish to mildly bearish, signalling a tentative easing of downward momentum but not yet a full reversal. This subtle change suggests that while selling pressure may be abating, buyers have yet to assert strong control.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bullish, hinting at a potential short-term recovery in momentum. However, the monthly MACD remains bearish, underscoring the longer-term downtrend that continues to weigh on the stock. This divergence between weekly and monthly MACD readings suggests that while short-term traders might find some opportunities, the broader trend remains challenging.

The Know Sure Thing (KST) indicator aligns with this view, showing mild bullishness on the weekly chart but bearishness on the monthly timeframe. This further emphasises the dichotomy between short-term optimism and longer-term caution.

Relative Strength Index and Bollinger Bands

The Relative Strength Index (RSI) on both weekly and monthly charts currently offers no clear signal, hovering in neutral zones that neither indicate overbought nor oversold conditions. This neutrality suggests that the stock is consolidating, awaiting a catalyst to drive a decisive move.

Bollinger Bands, which measure volatility and price levels relative to moving averages, are mildly bearish on both weekly and monthly charts. This indicates that price volatility remains subdued but with a slight downward bias, consistent with the overall mildly bearish technical trend.

Moving Averages and Volume Trends

Daily moving averages continue to signal bearishness, with the stock trading below key averages such as the 50-day and 200-day moving averages. This technical positioning reinforces the notion that the stock remains under pressure in the short term.

On the volume front, the On-Balance Volume (OBV) indicator shows no clear trend on the weekly chart but is mildly bullish on the monthly chart. This suggests that while recent trading volumes have not decisively supported a price rally, there is some accumulation occurring over the longer term, which could provide a foundation for future gains.

Dow Theory and Broader Market Context

According to Dow Theory, NCC Ltd shows no clear trend on the weekly chart, while the monthly chart indicates a mildly bearish stance. This aligns with the overall technical assessment, suggesting that the stock is in a phase of indecision with a slight downward bias over the longer term.

Comparing NCC’s returns with the Sensex reveals a mixed performance. Over the past week, NCC declined by 0.20%, slightly underperforming the Sensex’s 0.02% gain. However, over the last month, NCC outperformed with a 5.60% return versus the Sensex’s 2.15%. Year-to-date, the stock has fallen 6.58%, lagging behind the Sensex’s 2.26% decline. Over one year, NCC has underperformed significantly, dropping 20.06% while the Sensex gained 10.60%. Longer-term returns over three and five years show NCC outperforming the Sensex with gains of 67.84% and 68.98% respectively, compared to 39.74% and 67.42% for the benchmark. However, over ten years, the Sensex’s 255.80% return dwarfs NCC’s 130.11%, highlighting the stock’s relative underperformance in the very long term.

Mojo Score and Rating Update

MarketsMOJO has downgraded NCC Ltd from a Hold to a Sell rating as of 20 Oct 2025, reflecting concerns about the stock’s technical and fundamental outlook. The current Mojo Score stands at 41.0, categorised as Sell, with a Market Cap Grade of 3, indicating a mid-tier market capitalisation relative to peers. This downgrade signals caution for investors, especially given the mixed technical signals and recent price underperformance.

Investment Implications and Outlook

For investors, the technical landscape of NCC Ltd suggests a cautious approach. The mildly bearish trend combined with mixed momentum indicators implies that while short-term rallies may occur, the stock remains vulnerable to downside risks. The lack of strong bullish confirmation from RSI and moving averages further supports a wait-and-watch stance.

Long-term investors may find some comfort in the stock’s historical outperformance over three and five years, but the significant underperformance over the past year and the downgrade to Sell warrant careful portfolio consideration. Monitoring volume trends and monthly MACD signals will be crucial to identify any sustained reversal.

Summary

NCC Ltd’s technical parameters reveal a stock at a crossroads. The shift from bearish to mildly bearish trend, coupled with mixed signals from MACD, KST, and Bollinger Bands, paints a picture of tentative recovery overshadowed by persistent caution. The downgrade to Sell by MarketsMOJO and the subdued price performance relative to the Sensex reinforce the need for prudence.

Investors should closely monitor weekly and monthly momentum indicators for signs of a sustained trend reversal. Until then, the stock’s technical profile suggests limited upside potential and a risk of further declines, making it a challenging proposition in the current market environment.

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