Natco Pharma Limited – Technical Analysis Report (Monthly Timeframe)
Date: 07 October 2025
Exchange: NSE
CMP: ₹815.15 (+2.46%)
1. Overview
Natco Pharma Limited is showing a strong technical setup on the monthly chart, indicating potential for a long-term upside reversal after completing a corrective phase. The price has rebounded from a key support area, aligning with a high-volume accumulation zone on the Volume Profile, marking it as a strong “Best Buying Zone” for long-term investors.
2. Key Technical Levels
| Parameter | Value (₹) | Remarks |
|---|---|---|
| CMP | 815.15 | Current Market Price |
| PMH (Previous Month High) | 846.20 | Short-term resistance |
| PML (Previous Month Low) | 714.50 | Strong support |
| Best Buying Zone | 714.50 – 780.00 | Ideal accumulation area |
| Target 1 (T1) | 1,064.30 | First resistance/target zone |
| Target 2 (T2) | 1,432.60 | Medium-term target |
| Major Resistance | 1,520.00 | Long-term breakout level |
3. Technical Structure and Pattern Analysis
- Trend: After a major correction from its 2023 highs (~₹1,520), the stock formed a base structure near ₹700 levels, indicating potential completion of a long-term retracement phase.
- Volume Profile: High accumulation seen between ₹700–₹850 range, showing institutional interest and strong buying activity.
- BOS (Break of Structure): The prior downtrend structure was broken, signaling the start of a possible bullish reversal phase.
- Swing Projection: Fibonacci extension suggests potential upside towards ₹1,060 (T1) and ₹1,430 (T2).
- Support Validation: Multiple tests near ₹714 confirm strong demand in this region.
4. Indicator Summary
- Momentum: RSI (Monthly) trending upward from oversold levels — early bullish confirmation.
- Price Action: Formation of higher low candles post bottom reversal indicates fresh buying.
- Volume: Increasing monthly volume supports the bullish case for long-term investors.
5. Investment View
Short-Term View (3–6 Months):
Expect consolidation between ₹780–₹860 before a breakout above ₹850, targeting ₹1,060.
Medium to Long-Term View (6–18 Months):
Once ₹1,060 is decisively breached, the next major target lies at ₹1,430–₹1,520. Sustaining above ₹1,520 would open room for a potential all-time-high move.
6. Risk & Stop Loss
- Stop Loss (Positional): ₹700 (below structural support zone)
- Risk-Reward Ratio: Approximately 1:3.5, favorable for swing and positional investors.
7. Analyst’s Comment
Natco Pharma is technically positioned for a multi-month uptrend following a prolonged accumulation phase. The confluence of support at ₹714–₹780 and visible volume build-up suggests strong institutional positioning. Investors can consider accumulating in the “Best Buying Zone” for medium to long-term gains with a stop loss below ₹700.
Summary Table
| Timeframe | Trend | Action | Target(s) | Stop Loss |
|---|---|---|---|---|
| Short-Term | Sideways to Bullish | Accumulate on dips | ₹1,064 | ₹700 |
| Long-Term | Bullish | Hold for breakout | ₹1,432–₹1,520 | ₹700 |
Disclaimer:
This analysis is for educational and informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
