NMDC Steel Ltd Falls 2.33%: Mixed Technical Signals and Downgrade Shape the Week

Monday, 2 February 2026: Technical Momentum Shifts to Sideways

NMDC Steel Ltd opened the week with a decline, closing at Rs.42.35, down 0.14% from the previous Friday’s close of Rs.42.41. The stock’s technical momentum shifted from mildly bullish to sideways, reflecting a complex interplay of indicators amid a challenging market environment. The Moving Average Convergence Divergence (MACD) was mildly bearish on weekly and monthly charts, while the Relative Strength Index (RSI) remained neutral. Bollinger Bands suggested sideways movement on the weekly timeframe and bearish tendencies monthly, indicating increased volatility and a potential downward bias. The stock traded within a range of Rs.40.71 to Rs.42.50, well below its 52-week high of Rs.49.62 but comfortably above the 52-week low of Rs.28.35. This consolidation phase suggested investor caution despite some underlying bullish cues.

Tuesday, 3 February 2026: Q3 FY26 Results Reveal Widening Losses Amid Revenue Growth

On 3 February, NMDC Steel reported its Q3 FY26 financial results, revealing a widening loss despite revenue growth. The company’s operational challenges persisted, overshadowing the top-line improvement. The stock closed at Rs.41.64, down 1.68% on the day, despite a mildly bullish technical momentum indicated by daily moving averages and the weekly Know Sure Thing (KST) indicator. This mixed technical picture reflected short-term optimism tempered by fundamental concerns. The stock’s weekly return of 6.92% outpaced the Sensex’s modest 0.16% gain over the same period, but the longer-term outlook remained cautious given the widening losses and operational headwinds.

Wednesday, 4 February 2026: Downgrade to Strong Sell Amid Technical and Fundamental Concerns

MarketsMOJO downgraded NMDC Steel Ltd from a Sell to a Strong Sell rating on 4 February, citing deteriorating technical indicators and weak long-term fundamentals despite recent positive quarterly sales growth. The Mojo Score fell to 29.0, reflecting increased caution. The stock closed at Rs.41.64, down 1.68% from the previous day, with intraday volatility between Rs.39.74 and Rs.43.84. Technical indicators confirmed a shift to sideways momentum with mildly bearish MACD readings on weekly and monthly charts, neutral RSI, and bearish monthly Bollinger Bands. The downgrade underscored concerns about the company’s poor profitability trends, negative EBITDA, and weak debt servicing capacity, despite efficient inventory management and a 20.48% institutional holding.

Thursday, 5 February 2026: Mildly Bullish Signals Amid Sideways Trend

On 5 February, NMDC Steel showed a modest recovery, closing at Rs.41.59, up 0.70% on the day. Daily moving averages remained mildly bullish, and the weekly KST indicator suggested some positive momentum. However, the broader technical picture remained mixed, with the MACD still mildly bearish on weekly and monthly charts and Bollinger Bands indicating sideways to bearish trends. The stock’s volume declined sharply to 139,294 shares, reflecting subdued trading interest. This day’s price action suggested tentative short-term support but no clear breakout from the consolidation phase.

Friday, 6 February 2026: Week Ends with Slight Decline and Continued Uncertainty

NMDC Steel closed the week at Rs.41.42, down 0.41% on 6 February, with volume further declining to 96,874 shares. The stock’s technical momentum remained sideways, with no decisive signals for a sustained uptrend. The Sensex closed marginally higher at 36,730.20, up 0.10%, highlighting the stock’s underperformance relative to the broader market. Investors remained cautious amid the recent downgrade and mixed fundamental and technical signals. The stock’s trading range remained broad, with resistance near Rs.43 and support around Rs.40, reflecting ongoing uncertainty in the ferrous metals sector.

Key Takeaways

Mixed Technical Signals: The week saw NMDC Steel’s technical momentum shift from mildly bullish to sideways, with bearish MACD on weekly and monthly charts and neutral RSI readings. Daily moving averages and weekly KST provided some short-term bullish cues, but these were insufficient to overcome the broader caution.

Fundamental Concerns Persist: Despite revenue growth in Q3 FY26, losses widened, highlighting ongoing operational challenges. The company’s weak profitability, negative EBITDA, and poor debt servicing capacity contributed to the downgrade to Strong Sell by MarketsMOJO.

Underperformance vs Sensex: NMDC Steel declined 2.33% over the week, while the Sensex gained 1.51%, underscoring the stock’s relative weakness amid a recovering broader market.

Volatile Trading Range: The stock traded within a broad range of Rs.39.74 to Rs.43.84 during the week, reflecting investor uncertainty and sector-specific headwinds in the ferrous metals industry.

Institutional Holding and Quality Metrics: Institutional investors hold a significant 20.48% stake, and inventory turnover remains efficient at 4.00 times for the half-year. However, these positives are overshadowed by deteriorating financial trends and valuation risks.

Conclusion

NMDC Steel Ltd’s week was characterised by a cautious technical and fundamental outlook. The stock’s decline of 2.33% contrasted with the Sensex’s 1.51% gain, reflecting underperformance amid mixed signals. The downgrade to Strong Sell by MarketsMOJO, driven by weak profitability and deteriorating technical indicators, emphasises the challenges facing the company. While short-term bullish signals emerged midweek, the prevailing sideways momentum and bearish monthly outlook suggest that investors should remain vigilant. The stock’s performance will likely hinge on its ability to stabilise operationally and regain positive technical momentum amid a volatile ferrous metals sector.

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