The stock of NMDC Limited (NSE:NMDC) gapped up by INR 0.3 today and has INR 106.06 target or 25.00% above today’s INR 84.85 share price. The 6 months technical chart setup indicates low risk for the INR 315.66 billion company. The gap was reported on Feb, 5 by Barchart.com. If the INR 106.06 price target is reached, the company will be worth INR 78.92B more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 4.43% or INR 3.6 on February 5, hitting INR 84.85. NMDC Limited (NSE:NMDC) has declined 28.70% since July 9, 2015 and is downtrending. It has underperformed by 20.90% the S&P500.
NMDC Limited is an India-based company engaged in the mining of iron ore. The company has a market cap of INR315.66 billion. The Company’s business divisions include Iron Ore and Other minerals & services. It has 5.28 P/E ratio. The Firm is also engaged in the exploration of various minerals, including copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite and beach sands.