Chemical shares are witnessing renewed shopping for curiosity after a shallow retracement of the final three months. The home brokerage and analysis agency ICICI Securities expects the chemical house to proceed its major uptrend. Deepak Nitrite is its most well-liked choose inside chemical shares.
The inventory is seen rebounding taking assist on the decrease band of the rising channel in place since March 2020 and the rising 20 weeks EMA (exponential shifting common), thus providing a recent entry alternative with a beneficial threat reward arrange, the brokerage home stated in a be aware.
ICICI Securities Purchase score on the specialty chemical inventory comes with a goal worth of ₹3,010 per share and cease lack of ₹2,418 with timeframe of as much as 3 months.
“Key level to focus on since April 2020 is that the bottom formation above 20 week’s EMA provided an incremental shopping for alternative on a number of events, highlighting inherent power that augurs nicely for subsequent leg of up transfer,” the brokerage’s be aware added.
The inventory, through the present week’s commerce, has generated a breakout above the final 11 week’s broader consolidation vary ( ₹2500-2000), thus opening upside in the direction of ₹ 3010 as it’s confluence of the earlier all-time excessive of October 2021 and the measuring implication of the final 11 weeks vary breakout, ICICI Securities highlighted.
Deepak Nitrite is a chemical manufacturing firm. The Firm’s segments embody fundamental chemical compounds, high-quality and speciality chemical compounds, efficiency merchandise and phenolics. The fundamental chemical compounds phase presents sodium nitrite, sodium nitrate, nitro toluidines, gas components, and nitrosyl sulphuric acid. The multibagger inventory has surged 158% in a yr’s interval whereas the counter is up 36% within the final six months.
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Supply: Live Mint