Page 5 - Value_Plus_SEPT_2017

NMDC Ltd BUY TECHNICAL
CMP: Rs 130 (As on 01st Sep 2017)
Buy: Rs 130-122 PICK
Target Price: Rs 150-158
Stop-Loss: Rs 118 NMDC Ltd engages in the exploration and
production of iron ore in India. It also explores
NMDC Ltd for a range of minerals, including copper, rock
phosphate, lime stone, dolomite, gypsum,
5 ARIHANT CAPITAL ¡ SEPTEMBER 2017 bentonite, magnesite, diamond, tin, tungsten,
graphite, beach sands etc., as well as produces
and sells sponge iron and platinum group of
elements. In addition, the company focuses on coal
and gold minerals. It primarily holds interests in
the Bailadila iron ore mines located in Kirandul
Complex and Bacheli Complex, Chattisgarh;
and Donimalai iron ore mines located in various
regions, such as Kudremukh, Donimalai,
Bababudan, Kumaraswamy, and Ramandurg in
Karnataka, as well as a diamond mining project
located in Panna. NMDC Ltd also exports its iron
ore to countries, including Japan and South Korea.
The company serves clients like MMTC, Rashtriya
Ispat Nigam (VSP), Essar Steel, Ispat Industries,
Sponge Iron India, JSW Steel, Tata Metalliks,
Kirloskar Ferrous, Southern Iron & Steel Company
and CG based Sponge Iron Units.
Technical Outlook:
On the daily chart, the stock has closed above 200-
day SMA which suggests further upside. Further
the momentum oscillator both on weekly and the
daily chart is gaining momentum.
Hence we recommend buying in stock at Rs 130 or
on a decline up to Rs 122 levels with a stop loss of
Rs 118 for a target of Rs 150-158 levels.