NMDC Ltd Technical Momentum Shifts Signal Bullish Outlook Amid Strong Market Returns

Technical Momentum and Indicator Analysis

NMDC’s current price stands at ₹82.59, marking a 0.88% increase from the previous close of ₹81.87. The stock’s intraday range today spanned from ₹81.78 to ₹83.58, inching closer to its 52-week high of ₹86.84, while comfortably above the 52-week low of ₹59.56. This price action reflects a positive momentum shift, corroborated by several technical indicators.

The Moving Averages on the daily chart remain bullish, signalling sustained upward price momentum. This is a critical confirmation for traders and investors, as daily moving averages often serve as dynamic support levels during uptrends.

On the weekly timeframe, the Moving Average Convergence Divergence (MACD) remains mildly bearish, suggesting some short-term consolidation or profit-taking phases. However, the monthly MACD has turned bullish, indicating that the longer-term momentum is firmly positive. This divergence between weekly and monthly MACD readings suggests that while short-term fluctuations may occur, the overall trend remains constructive.

The Relative Strength Index (RSI) presents a mixed picture. The weekly RSI currently shows no clear signal, hovering in a neutral zone, while the monthly RSI is bearish. This could imply that the stock is not yet overbought on a weekly basis, allowing room for further gains, but caution is warranted over the longer term as monthly momentum may be cooling.

Bollinger Bands reinforce the bullish narrative, with both weekly and monthly bands indicating upward price pressure. The stock price is trading near the upper band on these timeframes, which often signals strong buying interest but also suggests that volatility could increase.

Volume and Trend Confirmation

On-Balance Volume (OBV) readings are bullish on both weekly and monthly charts, confirming that volume trends support the price advances. This volume-price relationship is a key factor in validating the strength of the ongoing uptrend.

The Know Sure Thing (KST) indicator is bullish on the weekly scale but mildly bearish monthly, echoing the mixed signals seen in MACD and RSI. This suggests that while short-term momentum is gaining, longer-term caution remains prudent.

Dow Theory assessments add further nuance: the weekly trend is mildly bearish, while the monthly trend shows no definitive direction. This indicates that despite the recent bullish technical upgrades, the stock may still be navigating transitional phases in its broader market cycle.

Performance Comparison with Sensex

NMDC’s returns have consistently outpaced the Sensex across most timeframes, highlighting its strong relative performance within the broader market. Over the past week, NMDC surged 4.28%, while the Sensex declined by 0.30%. The one-month return for NMDC stands at 8.10%, significantly higher than the Sensex’s 0.87% gain.

Year-to-date, NMDC has marginally declined by 0.70%, yet this compares favourably against the Sensex’s 3.49% fall, indicating relative resilience. Over the last year, NMDC’s return of 27.59% dwarfs the Sensex’s 10.25%, underscoring the stock’s strong recovery and growth trajectory.

Longer-term performance is even more impressive. Over three years, NMDC has delivered a remarkable 123.46% return, more than triple the Sensex’s 38.32%. The five-year return of 96.99% also comfortably exceeds the Sensex’s 67.51%. However, over a decade, NMDC’s 213.04% return trails the Sensex’s 255.22%, suggesting some cyclical or sector-specific headwinds in earlier years.

MarketsMOJO Grade Upgrade and Implications

Reflecting these positive technical and fundamental signals, MarketsMOJO upgraded NMDC’s mojo grade from Buy to Strong Buy on 26 February 2026. The current mojo score of 82.0 places NMDC among the top-rated stocks in the Minerals & Mining sector, signalling strong conviction in its near-term upside potential.

Despite a market capitalisation grade of 2, indicating a mid-cap status, NMDC’s technical trend upgrade to bullish and the strong volume confirmation suggest that institutional interest may be increasing. This could translate into enhanced liquidity and price stability going forward.

Sector Context and Outlook

Within the Minerals & Mining sector, NMDC’s technical indicators stand out positively. The bullish moving averages and supportive Bollinger Bands contrast with some mixed signals in momentum oscillators, reflecting a sector that is navigating cyclical recovery phases. Investors should monitor monthly RSI and KST readings closely for signs of potential overextension or correction.

Given the stock’s proximity to its 52-week high and the strong volume-backed momentum, NMDC appears well-positioned to capitalise on any favourable commodity price movements or sector tailwinds. However, the mildly bearish weekly MACD and Dow Theory signals counsel a measured approach, with attention to short-term volatility.

Investor Takeaway

NMDC Ltd’s recent technical parameter changes reflect a clear shift towards bullish momentum, supported by strong volume trends and an upgraded mojo grade. The stock’s outperformance relative to the Sensex over multiple periods further bolsters its investment appeal.

However, mixed signals from monthly momentum indicators and Dow Theory suggest that investors should remain vigilant for potential short-term corrections. The current technical landscape favours accumulation on dips, with daily moving averages providing key support levels near ₹80.

Overall, NMDC’s technical and fundamental profile positions it as a compelling candidate for investors seeking exposure to the Minerals & Mining sector’s recovery, with a strong buy recommendation from MarketsMOJO reinforcing this stance.

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