NMDC Steel Ltd Falls 8.72%: 3 Key Factors Driving the Sharp Weekly Decline

Jan 10 2026 11:00 AM IST
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NMDC Steel Ltd’s shares declined sharply over the week ending 9 January 2026, falling 8.72% from Rs.45.74 to Rs.41.75, significantly underperforming the Sensex’s 2.62% drop. The stock’s volatile week was marked by a midweek intraday low amid price pressure, mixed technical signals, and a shift in momentum that reflected both cautious optimism and bearish undertones in a challenging market environment.




Key Events This Week


5 Jan: Stock opens at Rs.44.98, down 1.66% amid broader market weakness


6 Jan: Recovery attempt with 1.47% gain to Rs.45.64 despite Sensex decline


7 Jan: Continued modest gains, closing at Rs.45.99 (+0.77%)


8 Jan: Sharp intraday low and 6.87% drop amid price pressure


9 Jan: Further decline of 2.52% to close week at Rs.41.75





Week Open
Rs.45.74

Week Close
Rs.41.75
-8.72%

Week High
Rs.45.99

vs Sensex
-6.10%



5 January 2026: Weak Start Amid Market Pressure


NMDC Steel Ltd began the week on a subdued note, closing at Rs.44.98, down 1.66% from the previous Friday’s close of Rs.45.74. This decline occurred alongside a marginal 0.18% drop in the Sensex, which closed at 37,730.95. The stock’s volume was relatively high at 611,436 shares, indicating active trading despite the negative sentiment. The broader market’s cautious tone and sectoral pressures likely weighed on the stock’s opening performance.



6 January 2026: Short-Lived Recovery Against Market Decline


On 6 January, NMDC Steel Ltd rebounded with a 1.47% gain to Rs.45.64, recovering some ground despite the Sensex falling 0.19% to 37,657.70. The stock’s volume decreased to 466,934 shares, suggesting less aggressive trading. This modest recovery indicated some buying interest, possibly driven by technical factors or short-term optimism, even as the broader market remained under pressure.



7 January 2026: Modest Gains Amid Mixed Market Signals


The stock continued its upward momentum on 7 January, closing at Rs.45.99, a 0.77% increase. The Sensex edged up slightly by 0.03% to 37,669.63, reflecting a relatively stable market day. Volume remained steady at 463,614 shares. This day’s performance aligned with technical indicators suggesting a bullish momentum shift, supported by positive weekly MACD and volume accumulation, signalling cautious optimism among investors.




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8 January 2026: Sharp Intraday Low and Price Pressure


NMDC Steel Ltd faced significant selling pressure on 8 January, with the stock plunging 6.87% to close at Rs.42.83. Intraday, it hit a low of Rs.42.59, marking a 7.39% drop from the previous close. This sharp decline outpaced the Ferrous Metals sector’s 3.08% fall and the Sensex’s 1.41% drop to 37,137.33. The stock’s performance reflected a reversal after two days of gains, with technical resistance at short-term moving averages and a cautious market environment contributing to the sell-off.


Despite trading above its 20-day, 50-day, and 200-day moving averages, the stock remained below its 5-day and 100-day averages, signalling short-term weakness. The Mojo Score remained at 46.0 with a Sell grade, indicating cautious sentiment amid the price pressure.



9 January 2026: Continued Decline Amid Mixed Technical Signals


The week closed with NMDC Steel Ltd’s shares falling a further 2.52% to Rs.41.75 on 9 January, marking an overall weekly loss of 8.72%. The stock traded between Rs.42.59 and Rs.45.90 during the session, reflecting volatility. The Sensex declined 0.89% to 36,807.62, underperforming relative to the broader market’s fall of 2.62% for the week.


Technical indicators showed a shift from bullish to mildly bullish momentum, with the MACD turning mildly bearish on weekly and monthly charts and Bollinger Bands signalling increased volatility. However, daily moving averages remained bullish, and On-Balance Volume suggested accumulation, indicating some underlying buying interest despite the price weakness.




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Date Stock Price Day Change Sensex Day Change
2026-01-05 Rs.44.98 -1.66% 37,730.95 -0.18%
2026-01-06 Rs.45.64 +1.47% 37,657.70 -0.19%
2026-01-07 Rs.45.99 +0.77% 37,669.63 +0.03%
2026-01-08 Rs.42.83 -6.87% 37,137.33 -1.41%
2026-01-09 Rs.41.75 -2.52% 36,807.62 -0.89%



Key Takeaways


Significant Underperformance: NMDC Steel Ltd’s 8.72% weekly decline far exceeded the Sensex’s 2.62% drop, highlighting stock-specific pressures amid a weak market.


Volatility and Price Pressure: The sharp intraday low on 8 January and continued selling on 9 January reflect heightened volatility and short-term resistance at key moving averages.


Mixed Technical Signals: While weekly MACD and volume indicators showed bullish momentum earlier in the week, the shift to mildly bearish MACD and bearish Bollinger Bands by week’s end suggest caution.


Mojo Score and Market Sentiment: The Mojo Score of 39.0 with a Sell grade indicates cautious market sentiment, though this is an improvement from a prior Strong Sell rating, signalling some stabilisation.


Sectoral and Market Context: The ferrous metals sector and broader market faced pressure, with NMDC Steel Ltd’s sharper declines reflecting sensitivity to sectoral headwinds and broader economic concerns.



Conclusion


NMDC Steel Ltd’s week was characterised by a volatile price trajectory, with early modest gains giving way to sharp declines amid sectoral weakness and mixed technical signals. The stock’s significant underperformance relative to the Sensex underscores the challenges it faces in the current market environment. While some technical indicators suggest underlying buying interest, the prevailing bearish momentum and increased volatility warrant a cautious stance. Investors should monitor key support levels near Rs.42 and resistance around Rs.46, alongside evolving technical trends, to gauge the stock’s potential direction in the near term.






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