NMDC has been in news for all wrong reasons in coming few days and stock took severe beating starting from 500 levels to around 280 odd levels in around a month time frame.
Looking at the daily chart of NMDC stock looks quiet oversold on charts and bounce back to the channel top is immmenient. Stock fundamentally is a very good company also so i would advise long term investor to give atleast 20% exposure to the stock at the current levels.RSI is showing is positive divergence and MACD is in oversold zone Ripe condition’s for a bounce.
Technically Speaking Stock has formed a double bottom around 280-85 levles and this coincide with channel bottom.Stock will face first resistance around 301 lelvel which is 5 EMA ,Once stock start trading above this level we can see levels of 308,315 and 331 levels. Stock has good support at 279 and SL of 270 on closing basis should be used for Long positions initiated.