NMDC Steel Ltd Hits Intraday Low Amid Price Pressure on 8 Jan 2026

Intraday Performance and Price Movement

NMDC Steel Ltd experienced a notable intraday decline, touching its lowest level of Rs 42.59, representing a 7.39% drop from the prior session. The stock underperformed its sector peers, falling by 7.05% on the day, which was considerably steeper than the Steel/Sponge Iron/Pig Iron sector’s decline of 3.08%. This marked a reversal after two consecutive days of gains, signalling a shift in momentum.

The stock’s day change of -7.05% also contrasted sharply with the broader market, where the Sensex declined by 0.92% to close at 84,180.96 points. NMDC Steel Ltd’s one-day performance of -6.72% versus the Sensex’s -0.92% highlights the stock’s relative weakness in today’s trading session.

Technical Indicators and Moving Averages

From a technical perspective, NMDC Steel Ltd’s price remains above its 20-day, 50-day, and 200-day moving averages, indicating some underlying medium- to long-term support. However, it is trading below its 5-day and 100-day moving averages, which suggests short-term selling pressure and a potential cooling off after recent gains. This mixed technical picture reflects the stock’s current struggle to maintain upward momentum amid immediate selling interest.

Sector and Market Context

The broader Steel/Sponge Iron/Pig Iron sector also faced headwinds, with a decline of 3.08% on the day. This sectoral weakness contributed to the pressure on NMDC Steel Ltd’s shares. The Sensex opened lower by 183.12 points and extended losses throughout the session, ending down 597.06 points or 0.92%. The index remains 2.35% below its 52-week high of 86,159.02, with the 50-day moving average trading above the 200-day moving average, indicating a still-positive medium-term trend despite the current pullback.

Performance Trends Over Various Timeframes

Examining NMDC Steel Ltd’s performance over longer periods reveals a mixed picture. The stock has delivered a 7.87% gain over the past month, outperforming the Sensex’s 1.08% decline during the same period. However, over three months, the stock has fallen by 4.65%, while the Sensex gained 2.94%. Year-to-date, NMDC Steel Ltd is down 3.07%, lagging the Sensex’s 1.22% decline. Over one year, the stock’s modest 1.56% gain trails the Sensex’s 7.72% rise, and over three, five, and ten years, the stock has shown no net change, significantly underperforming the Sensex’s robust gains of 40.53%, 72.56%, and 237.61% respectively.

Mojo Score and Ratings Update

NMDC Steel Ltd currently holds a Mojo Score of 46.0, with a Mojo Grade of Sell, reflecting a cautious stance based on its recent performance and fundamental assessment. This represents an improvement from its previous Strong Sell grade, which was downgraded on 30 Dec 2025. The company’s market capitalisation grade stands at 3, indicating a mid-tier valuation within its sector. These ratings underscore the stock’s current challenges amid a volatile market backdrop.

Immediate Pressures and Market Sentiment

The sharp intraday decline in NMDC Steel Ltd’s share price can be attributed to a combination of sector-wide weakness and broader market negativity. The steel sector’s decline of over 3% weighed on investor sentiment, while the Sensex’s near 1% fall added to the cautious mood. The stock’s failure to sustain gains above its short-term moving averages suggests that traders are taking profits or reducing exposure amid uncertainty.

Market participants appear to be reacting to the broader risk-off environment, with the Sensex retreating from recent highs and the steel sector facing pressure from subdued demand and pricing concerns. NMDC Steel Ltd’s relative underperformance today highlights the stock’s sensitivity to these factors and the challenges in maintaining momentum in a cautious market.

Summary of Market Conditions Impacting NMDC Steel Ltd

Today’s trading session was characterised by a broad-based decline in equity markets, with the Sensex falling nearly 600 points. The steel sector’s underperformance added to the pressure on NMDC Steel Ltd, which saw its shares retreat sharply after a brief rally. The stock’s intraday low of Rs 42.59 represents a significant correction from recent levels and reflects the prevailing cautious sentiment among investors.

While the stock remains above key medium- and long-term moving averages, the short-term technical indicators suggest a period of consolidation or correction may be underway. The company’s Mojo Grade of Sell and a Mojo Score below 50 further indicate that the stock is currently viewed with caution by the market.

Overall, NMDC Steel Ltd’s intraday decline is consistent with the broader market and sector trends, highlighting the challenges faced by ferrous metals stocks in the current environment. The stock’s relative underperformance today underscores the immediate pressures weighing on its price action.

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