Deepak Nitrite shares are in an intermediate uptrend because the specialty chemical inventory has been making increased tops and better bottoms for the final a number of months, stated brokerage home HDFC Securities. The brokerage sees extra upside on the multibagger inventory in 1-3 months.
“The inventory not too long ago corrected from a excessive of 3020 examined in October 2021 and located help on the 2005 ranges which is simply above the 50 week SMA, indicating this can be a sturdy intermediate help,” HDFC Securities stated in a observe on Deepak Nitrite which it has beneficial as a part of its emargin positional inventory decide.
The brokerage additional highlighted that the chemical inventory has since then bounced again and has reversed its latest brief time period downtrend within the course of. The inventory not too long ago broke out of the 2120-2400 vary on the again of above common volumes.
With the intermediate technical setup too trying optimistic, HDFC Securities believes that Deepak Nitrite inventory has the potential to maneuver increased within the coming weeks and subsequently recommends a purchase with targets of ₹2662/2855 and cease lack of ₹2,280 with a time horizon of 1-3 months.
“Technical indicators are giving optimistic indicators because the inventory is buying and selling above the 20 day and 50 day SMA. Day by day momentum indicators just like the 14-day RSI have bounced again from oversold ranges and are in rising mode now. This augurs properly for the uptrend to proceed,” the observe added.
Deepak Nitrite is a chemical manufacturing firm. The Firm’s segments embody fundamental chemical substances, high-quality and speciality chemical substances, efficiency merchandise and phenolics. The fundamental chemical substances section presents sodium nitrite, sodium nitrate, nitro toluidines, gas components, and nitrosyl sulphuric acid. The multibagger inventory has surged 145% this 12 months (year-to-date) whereas it’s up 163% in a 12 months’s interval.
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Supply: Live Mint