Fresh interest has emerged in this midcap construction company! Time to buy?

Fresh interest has emerged in this midcap construction company! Time to buy?

Indian Market
by 5paisa Research Team Last Updated: 2022-11-16T12:52:33+05:30

The stock of NBCC jumped over 6% on Wednesday amid fresh buying interest.

PSU stocks have been performing exceptionally well, right from the banks to railway stocks and now the construction sector. Interestingly, the main driver for the growing interest in PSU stocks has been a sharp rise in profitability. The companies have been showing good business performance, which has thus boosted and renewed the investors' sentiment. NBCC, is one such Government of India Navratna Enterprise which operates across India & overseas in PMC (Project Management Consultancy), EPC (Engineering Procurement & Construction) & RE (Real Estate). It is also one of the strong growing companies in its sector.

Interestingly, the stock of NBCC has witnessed strong buying sentiment lately, having surged over 25% in nearly a months period. In its recent quarterly results, net profit grew 34% YoY to Rs 98 crore in the quarter that ended in September 2022. The income was recorded at Rs 2,013 crore which is up 8% YoY.  

With such healthy numbers, the stock has jumped over 6% on the bourses during Wednesday’s trading session. Technically, it has registered a breakout from its 10-week cup pattern with massive volumes. The volume grew for the fourth consecutive week, which shows rising buying interest in the stock. It has crossed above its 200-DMA and now trades above all its key moving averages. The 14-period daily RSI (72.10) is in super bullish territory and indicates strong strength in the stock. The ADX (30.58) points northwards and shows rising trend strength. The MACD line is rising steadily, indicating greater upside potential. The KST and TSI indicators have a bullish bias towards this stock. The Relative Strength (RS) shows a relative outperformance against the broader market. In a nutshell, the stock is expected to perform better in times to come.

Currently, the shares of NBCC are trading at the Rs 37 level. Momentum traders should include this stock in their watchlist as it is likely to produce many trading opportunities in the upcoming days.


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