With a time frame of up to 3 months, the domestic brokerage and research firm has recommended chemical industry company Sudarshan Chemical as its top MTF stock pick. Sudarshan Chemical is a leading player in the Indian color pigment industry and is also among the top four players globally.
The brokerage said in a note on Wednesday that the daily timeframe chart of Sudarshan Kem, which was trending sideways for a few sessions, has a breakout with high volume. The chemical stock has also broken above a downward sloping trend line. The brokerage has seen the formation of a bullish pattern on the daily and weekly time frames.
It added that momentum oscillators like Relative Strength Index (RSI) and MACD (Moving Average Convergence Divergence) are indicating a bullish trend for the stock for a few more weeks.
“The overall chart pattern of Sudarshan Chem indicates a long trading opportunity. An attempt can be made to create a positional long as per the levels mentioned above, said HDFC Securities in the note.
The brokerage has a buy recommendation on the chemical stock with the target price near ₹700, 780 With Add On Dips Suggestion ₹635 per share and stop loss of ₹618.
Sudarshan began manufacturing pigments in 1952 with a handful of inorganic pigments and has since expanded with a number of products covering classical azo pigments, high performance pigments, impact pigments and pigment dispersions. It primarily serves the coatings, plastics, inks and cosmetics markets. The stock is up more than 40% this year (year-over-year or YTD).
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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