By On September 6, NHPC’s stock experienced a decline, trading at ₹95.78, marking a 2.48% drop from the previous closing price. The stock fluctuated throughout the day, hitting a high of ₹98.37 and a low of ₹95.72, reflecting a day of volatility for the company’s shares.
The broader market also faced pressure, with the Sensex trading lower at ₹81,271.11, down 1.13%. The decline in NHPC’s stock price is part of a broader bearish trend affecting various sectors.
The company’s stock is currently trading above its 300-day Simple Moving Average (SMA) but remains below its 5, 10, 20, 50, and 100-day SMAs. This suggests that while the stock is performing relatively well over the long term, it is struggling in the short to medium term.
According to technical analysis, NHPC’s stock has key resistance levels at ₹98.93, ₹99.67, and ₹100.35. These levels indicate where the stock might face selling pressure if it attempts to rise further.
The stock has key support levels at ₹97.51, ₹96.83, and ₹96.09, which could act as price floors and prevent further declines. The 300-day SMA is seen as a significant support level, while the shorter-term SMAs represent potential resistance points.
Volume traded for NHPC on the NSE and BSE was notably lower, down by 39.82% compared to the previous trading session. This decrease in volume, coupled with the negative price movement, suggests a bearish trend.
Lower trading volumes can indicate reduced investor interest or confidence, potentially exacerbating price declines. Positive price movements with higher volumes typically indicate a strong uptrend, while negative movements with high volumes can signal further declines.
From a fundamental perspective, NHPC has a Return on Equity (ROE) of 9.58% and a Price-to-Earnings (P/E) ratio of 27.30. The ROE reflects the company’s ability to generate profit relative to shareholders’ equity, while the P/E ratio indicates how much investors are willing to pay for each rupee of earnings. The P/E ratio of 27.30 suggests that investors are paying a premium for the stock relative to its earnings, which could be a factor in the stock’s current performance.
The company’s promoter holding stands at 67.40%, with Mutual Funds (MFs) holding 5.22% and Foreign Institutional Investors (FIIs) holding 8.96%. The increase in MF holding from 4.74% in March to 5.22% in June, and the rise in FII holding from 6.80% to 8.96% in the same period, indicate a slight uptick in institutional interest. This could be a positive sign, suggesting that institutional investors see potential in NHPC despite recent market volatility.
The stock’s current performance is reflective of the mixed performance among its peers. While companies like Adani Energy Solutions, JSW Energy, and SJVN are also experiencing declines, Torrent Power is seeing an uptick. This mixed performance among peers highlights the broader challenges facing the energy sector.
Looking ahead, the median 1-year forecasted upside for NHPC’s shares is 2.06%, with a target price of ₹97.75. This modest forecast suggests limited upside potential in the near term, reflecting the cautious sentiment among analysts and investors.
NHPC’s stock is navigating a challenging environment with significant resistance levels and declining volumes. The broader market trends and mixed performance among sector peers are contributing to the stock’s volatility. Investors will need to closely monitor technical indicators and market conditions to gauge future performance and make informed decisions about their holdings in NHPC.
