Buy NLC India For Potential Upside Of 15% In 3 Months: HDFC Securities

Nifty is barely 1.6% away from its all time high of 18,604 and after crossing 18,300 points, next target is 18500 and the support for the headline index is placed at 18100. As per experts currently, the risk reward ratio is unfavorable and hence buy on dips strategy shall hold good. Meanwhile, brokerage house has given its 'Buy' call on NLC India for an investment horizon of 3 months and returns of 14.86 percent.

Note these are positional calls by the broker firm which are based on technical analysis of the stock. The stock ideas are based on the market movements by examining historical data, like price and volume.

Buy NLC India for a target price of Rs. 80

For the small cap company from the power-generation and distribution segment, HDFC Securities has given a target price of Rs. 73, 80. This implies a potential upside of 14.86 percent given the stock's last traded price of Rs. 69.65. The stop loss recommended for this investment bet is Rs. 63.4.

Technical observations on NLC India:

NLC India stock has moved past its intermediate high with higher volumes. And now after the stock has crossed its intermediate highs, the trend is bullish.

Leading momentum oscillators provide for positive indications. RSI oscillator stands at over 70 and is rising higher-which suggests strength in the current uptrend.

Further the stock has also retraced faster by its earlier move suggesting bullishness in the stock.

HDFC Securities’ recommendation on NLC to investors

Considering the Technical evidences discussed above, the brokerage recommends buying NLC INDIA at CMP of 69.50 and average at 66 for the upside targets of 73 and 80, keeping a stop-loss at 63.40

About NLC:

NLC India or Neyveli Lignite is a Navratna GoI entity incorporated in the year 1956. The company primarily operates in 2 segments, namely lignite mining and power generation. The company has 4 lignite mines and 4 power stations.

Disclaimer:

The views and recommendations on the stock are that of brokerage firm. Readers should not construe the report to be an investment advice. Moreover exercise extreme caution as Nifty is trading close to its all time high.

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