What's behind National Grid's latest stock pullback?

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National Grid slips 2.28% today

Highlights

National Grid issued 50,862,899 new ordinary shares under its Scrip Dividend Scheme, increasing total voting shares to 5,026,792,463.
An application was made to admit the new shares to the UK Official List, with trading set to begin July 23, 2026.
Stock trades below major moving averages amid broad selling, but momentum signals suggest a rebound attempt within a GBX1,197–GBX1,244 range.

Issuance expands capital base as new shares face sustained selling

National Grid plc issued 50,862,899 new ordinary shares as part of its Scrip Dividend Scheme for the 2025/26 final dividend. The company's ordinary share capital is now registered at 5,249,831,589 shares, with 223,039,126 held in treasury and 5,026,792,463 ordinary shares carrying voting rights. An application has been made for these new shares to be admitted to the UK Official List, with trading expected to start on July 23, 2026. 219,257 American Depositary Receipts were also issued at a reference price of US$80.5453, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, emphasizes the persistent weakness in National Grid's technical structure. He notes that the stock is underperforming key moving averages, with momentum indicators offering little conviction for bulls. The recent large share issuance may be weighing on sentiment and diluting potential upside. He cautions that even with oscillators showing mixed signals, selling pressure restricts any meaningful recovery. "Current price action reflects cautious sentiment — any rebound attempt may be short-lived unless strong demand returns."

Viktoras Karapetjanc, expert at Traders Union, believes National Grid’s latest share issuance demonstrates the company’s ability to engage investors and support capital flexibility. He sees further opportunity for sustained dividend-led interest, especially once the new shares begin trading. Karapetjanc contends that the broader market environment remains supportive for quality defensives like National Grid, despite the current pullback. "This market setup still offers attractive entry points for long-term growth — bullish structure remains intact over the medium term."

Jainam Mehta, market strategist, points to conflicting momentum signals and tight price ranges that suggest an indecisive near-term phase. He notes that with both ceiling and floor levels clearly defined, traders should monitor for breakout or breakdown setups around GBX1,221. Mehta highlights the potential for a contrarian bounce if short-term selling exhausts, but urges caution given the volatility. "A tactical trade may emerge if price regains GBX1,221 with conviction, but risk management is key in this low-clarity environment."

Mixed momentum with support tested amid technical weakness

National Grid is currently trading below its 20-day (GBX1,238), 50-day (GBX1,230), and 200-day (GBX1,226) moving averages, indicating sellers are pressuring the stock across short-, medium-, and long-term trends. The Ichimoku Kijun at GBX1,221 is serving as immediate support, with the near-term ceiling at GBX1,221 and the floor at GBX1,216. Momentum indicators send mixed signals: the MACD remains in strong buy territory, but the ADX reading is neutral, pointing to a lack of clear directional strength. RSI and Stochastic RSI are both on buy forecasts, suggesting mild upward pressure, whereas the CCI is neutral. Bull/Bear Power shows buyers dominate intraday momentum, yet it is flagged as overbought. The stock is down to GBX1,221, falling 2.28% for the session after opening with a downside gap of about 0.52%. Price is trading near the daily low, with intraday volatility at 2.17%. There is evident pressure after the open as momentum and oscillators give a mixed but slightly positive bias within a soft session.

Earlier, analysts noted that National Grid’s issuance of new shares under its scrip dividend program was likely to reinforce short-term selling pressure and cautious sentiment. With the stock now trading below its key moving averages and momentum signals remaining mixed, investors should closely monitor for a potential rebound attempt if price sustains above GBX1,221 in the coming sessions.

Source of Data: NG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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