Nava Limited
Long

Nava Ltd | Cup & Handle Breakout with Strong RS

160
Nava Ltd. is showing strong price action with a Cup & Handle formation on the weekly chart, supported by strong volume expansion and positive relative strength. The stock is currently trading above all its key moving averages, with cushion of ~12% from the 50DMA and ~35% from the 200DMA, indicating a well-established uptrend.

📊 Fundamentals:

Operating Revenue: ₹3,954.40 Cr (TTM)

Annual Revenue Growth: 5% (moderate)

Pre-tax Margin: 40% (excellent)

ROE: 14% (good)

Debt-to-Equity: 11% (very healthy balance sheet)

📈 Technical Highlights:

Breakout above a base on weekly charts.

Currently trading ~8% above pivot point (extended from ideal entry zone).

Cup & Handle pattern under formation, supported by strong volumes.

Strong Relative Strength (RS) trend vs Nifty.

O’Neil Methodology Ratings:

EPS Rank: 80 (Good – consistent earnings)

RS Rating: 92 (Great – strong outperformance vs peers)

Buyer Demand: A (strong accumulation)

Institutional Holding: Increased in the latest quarter (positive sign).

Overall View:
Nava Ltd. combines solid fundamentals, strong technical structure, and increasing institutional support. With the Cup & Handle setup, robust RS, and volume confirmation, the stock looks well-positioned to extend momentum in Stage 2.

Caution: Stock is trading slightly extended (~8% above pivot). Ideal entries are closer to pivot levels, so risk management is key.

🔖 Disclaimer: This analysis is for educational purposes only and should not be considered as financial advice or a buy/sell recommendation.

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