NBCC share price rises over 4 pct; experts unveil this profitable trade strategy
NBCC share price has surged around 4.5 per cent in the intraday trade. The Government PSU stock rose up to Rs 27.40 per stock levels while it had closed on Thursday at Rs 26.05.
NBCC share price has surged around 4.5 per cent in the intraday trade. The Government PSU stock rose up to Rs 27.40 per stock levels while it had closed on Thursday at Rs 26.05. According to stock market experts, this rise in the NBCC stock is because of the exchange filing post-Thursday market close by Ahluwalia Contracts (India) Limited. In its report to the BSE India, the company reported that it has bagged Rs 290 crore project from the NBCC that sparked hopes of execution of the Government infrastructure projects in near future, said experts.
Speaking on the NBCC share price rise, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "NBCC share price has shot up nearly 4.5 per cent due to the Ahluwalia Contracts (India) exchange filing yesterday after the markets were closed. In its filing, the company has reported that it has got Rs 290 crore project clearance from the Government PSU NBCC. This has injected fresh hopes among the stock investors that the Government of India (GoI) is going to clear all its pending projects in next 3-6 months. Since, these pending projects will be executed through NBCC, its share price has shot up today."
Speaking on the NBCC share price fundamentals and its outlook in the long-term Gorakshkar said, "The fundamentals of the NBCC shares are quite impressive as it is available at discounted price of around Rs 27 per stock levels. If compared to other Government PSUs, its balance sheet is quite strong as its debt is very low. If the execution of the pending projects goes in sync with the market expectations, then in a six to one year long-term perspective, the NBCC share price may shoot up to rs 50 per share mark."
See Zee Business Live TV streaming below:
On technicals of the NBCC shares, SEBI registered technical equity analyst Simi Bhaumik said, "NBCC share price has strong support at Rs 25.60 mark while it has strong resistance at Rs 30. In the immediate short-term, we can expect it to hit the Rs 30 mark and once it manages to break its resistance of Rs 30, it will soon shoot up at Rs 33 to Rs 35 levels." Bhaumik said that fresh upside movement can be expected only after the NBCC stocks manages to break Rs 35 mark.
In its exchange filing at the BSE India yesterday, Ahluwalia Contracts (India) Limited reported about the NBCC project and said, "We are pleased to inform you that Ahluwalia Contracts (India) Limited has secured new order aggregating to Rs.290 Crores (approx.) for Construction of new Building of Pt. Jawaharlal Medical College and Hospital, Chamba (Himachal Pradesh) awarded from NBCC (India) Ltd. The total order inflow during the FY 2020-21 stands at Rs 290 Crores."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.