NALCO Share Price Declines 2%; Stock Looking Bearish on Technical Charts
NALCO share price declined by 2 percent on Friday and the technical charts suggest further weakness in the PSU counter. NALCO has witnessed selling from Rs 190 levels and the stock is currently looking bearish on charts. We can expect further weakness in the metal counter. While steel stocks have been trading firm, aluminum stocks have witnessed weakness in the recent sessions. NALCO has declined by 16.7 percent during the last six months. TopNews Team has reviewed technical levels for NALCO.
Fibonacci Retracement Levels: Mapping Price Zones
Using the 52-week high of Rs 262.99 and the low of Rs 147.15 as reference points, the following Fibonacci retracement levels offer key price targets and support/resistance zones:
| Fibonacci Level | Price (Rs) |
|---|---|
| 23.6% | Rs 174.87 |
| 38.2% | Rs 181.00 |
| 50.0% | Rs 205.07 |
| 61.8% | Rs 229.14 |
| 76.4% | Rs 247.93 |
The current market price is trading just above the 23.6% retracement level. Sustaining above Rs 181 could confirm a breakout and set the stage for a move toward Rs 205 in the medium term.
Candlestick Patterns Suggest Potential Reversal
While the stock is currently in downtrend, we can also expect a reversal from lower levels. A recent review of NALCO’s daily candlestick chart reveals the emergence of a bullish engulfing pattern, a powerful reversal signal often indicating the end of a short-term downtrend. This bullish candle fully engulfs the prior session’s candle and reflects a shift in market sentiment.
The emergence of this pattern around a major support zone adds further weight to the possibility of an upward breakout, especially if supported by a rise in trading volumes.
Support and Resistance Levels: Watching the Trend Edges
At present, the stock is sandwiched between tight near-term boundaries:
Immediate Support: Rs 174.87
Immediate Resistance: Rs 181.00
Major Resistance: Rs 205.07 and Rs 229.14
A breakout above Rs 181, especially with strong volumes, may trigger an upward rally, while a fall below Rs 174 may open room for retesting lower support around Rs 165.
Final Word: A Stock Worth Watching Closely
NALCO may not be the most glamorous stock in the metals space, but its strong fundamentals, attractive valuation, and emerging technical setup make it a compelling watch. The convergence of a bullish engulfing pattern, support at a key Fibonacci level, and positive relative positioning compared to peers makes this an opportune time to evaluate the stock.
Traders can look for a breakout above Rs 181 for short- to medium-term momentum plays, while long-term investors may find comfort in the stock’s value metrics and dividend consistency.
