NMDC Drops 3.3%

NMDC Breaks Below ₹130 Support Bearish Head & Shoulders Pattern Forms

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Bearish Head & Shoulders pattern on daily chart Support break below ₹130 Medium confidence level (60%) due to uncertain macroeconomic environment Entry point at ₹1,250, with stop loss at ₹1,225 and targets at ₹1,300 and ₹1,350 Hold for 2-3 trading sessions with a risk-reward ratio of 1.5

NMDC, a leading iron ore producer in India, has seen a sharp decline in its stock price, down by 3.32% today. The primary catalysts behind this movement are the recent decline in global iron ore prices, weak demand from the Chinese market, and economic headwinds affecting the steel industry. This correction presents a potential buying opportunity for retail investors.

The daily chart of NMDC shows a clear bearish Head & Shoulders pattern, with the neckline breaking below ₹130. This pattern suggests that the bears have taken control, and the stock price may continue to decline. The weekly chart also shows a bearish bias, with support zones at ₹140, ₹145, and ₹150.

View on daily chart with 50-day MA + RSI to confirm breakout

The recommended chart configuration for NMDC includes a candlestick chart on the daily and weekly timeframes, with the 20-day and 50-day Simple Moving Averages (trend identification), RSI (14-period) for overbought/oversold levels, MACD for momentum confirmation, and volume bars (underlying strength).

Swing traders, investors with a medium to long-term view

ENTRY PRICE: ₹1,250 ( slight dip from current levels) STOP LOSS: ₹1,225 ( 3% buffer for intraday volatility) TARGET 1: ₹1,300 (5% upside in a short term) TARGET 2: ₹1,350 (10% upside if market sentiment improves) Timeframe: Hold for 2-3 trading sessions Risk/Reward Ratio: Risk ₹100 to make ₹150 (1.5 times reward)

• Regulatory changes affecting iron ore mining
• Competition from domestic and global players

• Sudden changes in global iron ore prices
• Economic headwinds affecting the steel industry

• Break of ₹120 on the daily chart

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Buy (Breakout)</b> | CONFIDENCE: Medium (60%) | <b>WHY: Slight dip in price provides a potential entry point for retail investors to capitalize on the weakness.</b>

Disclaimer: The views expressed in this report are for informational purposes only and should not be considered as investment advice. Trading in securities involves risk, and the value of securities can fluctuate significantly. We do not recommend anyone to buy or sell any security based on these recommendations. Past performance is not a guarantee of future performance.

NMDC Breaks Below ₹130 Support Bearish Head & Shoulders Pattern Forms

Buy | CONFIDENCE: Medium (60%) | WHY: Slight dip in price provides a potential entry point for retail investors to capitalize on the weakness.