NMDC Steel shares jumped over 6% on Thursday, 15 October, amid a broad market rally. While the stock got a boost, experts remain cautious. Virat Jagad said, "NMDC Steel continues to exhibit a weak technical structure despite a minor recovery." Investors are now watching key resistance levels near ₹43.
NMDC Steel shares jumped over 6% on Thursday, 15 October, amid a broad-based rally in the Indian stock market and improving sentiment in the domestic steel sector.
Indian equities surged today, with the Sensex gaining over 1,100 points and the Nifty 50 moving above the 22,900 mark. The positive market sentiment may have supported buying interest in individual stocks, including NMDC Steel.
Sentiment in the steel sector has also shown signs of improvement. Domestic hot-rolled coil (HRC) steel prices rose by ₹700 per tonne in the week ended 9 October to ₹64,700 per tonne. Meanwhile, NMDC raised the price of lump iron ore by ₹150 per tonne as of September, a development that could affect steelmakers' raw material costs, according to news reports.
Separately, NMDC Steel announced a change to its board composition. In a filing dated 13 October, the company said the Ministry of Steel had communicated the appointment of Sarita Chauhan, Additional Secretary and Financial Adviser at the Ministry of Steel, as a Government Director on its board.
The appointment was made with effect from 12 October 2026, in accordance with the ministry's order dated 12 October, and will remain in effect until further orders or until otherwise applicable, whichever is earlier.
Virat Jagad, Senior Technical Research Analyst at Bonanza, said NMDC Steel continues to exhibit a weak technical structure despite a minor recovery, with the stock trading at ₹40.16, below its key moving averages. The RSI at 42.14 also indicates weak momentum. He placed immediate resistance in the ₹42.00- ₹43.18 range and support at ₹39- ₹38. A sustained move above ₹43.18 would be needed to improve the technical outlook, while a break below ₹38 could trigger further downside.
Rajesh Bhosale, Technical Analyst at My Advisor Alpha, said NMDC Steel opened with a gap-up but lacked follow-up buying near its 200-day simple moving average (200-DMA). He identified ₹42- ₹43 as a key resistance zone, adding that a decisive breakout could pave the way for a move towards ₹46. On the downside, ₹39 remains a strong support level.