NMDC Ltd Technical Momentum Shifts to Mildly Bullish Amid Mixed Indicator Signals

Overview of Current Price and Market Context

As of 2 Feb 2026, NMDC Ltd’s stock price closed at ₹80.38, down 0.95% from the previous close of ₹81.15. The intraday range saw a low of ₹78.66 and a high of ₹83.45, indicating some volatility within the session. The stock remains comfortably above its 52-week low of ₹59.56 but still below its 52-week high of ₹86.84, suggesting room for upside if momentum strengthens.

Market capitalisation grading remains modest at 2, reflecting NMDC’s mid-cap status within the Minerals & Mining sector. The company’s Mojo Score has improved to 70.0, upgrading its Mojo Grade from Hold to Buy as of 1 Dec 2025, signalling increased confidence from technical and fundamental analysis frameworks.

Technical Trend Shift: From Bullish to Mildly Bullish

The technical trend for NMDC has shifted from a clear bullish stance to a mildly bullish one. This subtle change reflects a tempering of upward momentum, as some indicators show signs of weakening while others remain supportive. The daily moving averages continue to signal bullishness, with the stock price trading above key averages, reinforcing short-term upward bias.

Weekly MACD remains bullish, indicating that momentum on a medium-term basis is still positive. The monthly MACD also supports this view, suggesting that the longer-term trend has not yet reversed. However, the monthly RSI has turned bearish, signalling that the stock may be entering an overbought or weakening momentum phase on a longer timeframe.

Mixed Signals from Momentum Indicators

The Relative Strength Index (RSI) on the weekly chart currently shows no clear signal, hovering in a neutral zone. This contrasts with the monthly RSI’s bearish stance, which may indicate that while short-term momentum is stabilising, longer-term momentum is deteriorating. Such divergence often precedes consolidation or a potential correction.

Bollinger Bands on both weekly and monthly charts are mildly bullish, suggesting that price volatility is contained within an upward trending channel but without strong breakout signals. This aligns with the mildly bullish technical trend, implying cautious optimism among traders.

Other Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator presents a mixed picture: bullish on the weekly timeframe but mildly bearish on the monthly. This divergence further emphasises the nuanced momentum shift, where short-term strength is counterbalanced by longer-term caution.

Dow Theory analysis shows no definitive trend on either weekly or monthly charts, indicating a lack of clear directional conviction from this classical trend-following perspective. Similarly, On-Balance Volume (OBV) shows no trend, suggesting that volume flow is not currently confirming price movements, which could limit the strength of any rally or decline.

Performance Comparison with Sensex

NMDC Ltd has outperformed the Sensex over multiple time horizons, underscoring its strong relative strength despite recent technical caution. Over the past week, NMDC gained 5.21% compared to the Sensex’s decline of 1.00%. Over one month, the stock declined 3.63%, slightly better than the Sensex’s 4.67% fall. Year-to-date, NMDC is down 3.35%, outperforming the Sensex’s 5.28% drop.

Longer-term returns are particularly impressive: NMDC has delivered a 23.74% return over the past year versus the Sensex’s 5.16%, a 98.84% gain over three years compared to 35.67% for the benchmark, and a remarkable 131.54% over five years against the Sensex’s 74.40%. Even over a decade, NMDC’s 201.27% return is close to the Sensex’s 224.57%, highlighting the company’s consistent value creation in the Minerals & Mining sector.

Moving Averages and Daily Momentum

Daily moving averages remain bullish, with the stock price trading above its 50-day and 200-day averages. This technical positioning supports the notion that short-term momentum remains intact despite the recent price dip. The moving averages also act as dynamic support levels, which may limit downside risk in the near term.

However, the slight decline in price today (-0.95%) and the failure to sustain the intraday high of ₹83.45 suggest some profit-taking or resistance near the upper Bollinger Band. Traders should watch for a sustained break above the 52-week high of ₹86.84 to confirm a resumption of stronger bullish momentum.

Outlook and Technical Summary

In summary, NMDC Ltd’s technical indicators present a mixed but cautiously optimistic picture. The upgrade in Mojo Grade to Buy with a score of 70.0 reflects improved confidence in the stock’s prospects. Weekly MACD and moving averages support a bullish stance, while monthly RSI and KST caution against overextension.

Investors should monitor the interplay between these indicators closely. A sustained improvement in monthly momentum indicators would reinforce the bullish case, while further deterioration could signal a more pronounced correction or consolidation phase. Volume trends, as indicated by OBV, remain neutral, so confirmation from increased buying interest would be a positive development.

Investment Considerations

For investors, NMDC Ltd’s current technical profile suggests a watchful approach. The stock’s strong historical returns and relative outperformance versus the Sensex provide a solid fundamental backdrop. However, the mixed technical signals advise caution, especially given the bearish monthly RSI and mildly bearish monthly KST.

Traders may consider using the daily moving averages as support levels for tactical entries, while longer-term investors should await confirmation of renewed momentum on monthly indicators before committing additional capital. The absence of clear volume trends means that price movements may lack conviction until volume picks up.

Overall, NMDC remains a compelling Minerals & Mining sector stock with a favourable Mojo Grade upgrade, but the current technical momentum shift calls for prudent monitoring of key indicators and price action.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →