Chemical stocks are seeing fresh buying after the last three months of shallow retracement. Domestic brokerage and research firm ICICI Securities expects the chemicals space to continue its primary uptrend. Deepak Nitrite is its favorite pick chemical stock,
The brokerage house said that the stock is seen taking support at the lower band of the rising channel and rising 20 week EMA (Exponential Moving Average) since March 2020, thus providing a fresh entry opportunity with a favorable risk reward. in a note.
ICICI Securities Buy Rating on Exclusive Chemical Stock . Comes with a target price of 3,010 per share and stop loss 2,418 with a time frame of up to 3 months.
The note from the brokerage said, “The key thing to highlight since April 2020 is that the base formation above the 20-week EMA offered an incremental buying opportunity on multiple occasions, highlighting the underlying strength Which bodes well for the next phase.”
During the current trading week, the stock generated a breakout above the broader consolidation range of the past 11 weeks ( 2500-2000), thus opening upside down 3010 as it is a confluence of the previous all-time high of October 2021 and the measurement implications of the range breakout of the past 11 weeks, ICICI Securities highlighted.
Deepak Nitrite is a chemical manufacturing company. The company’s segments include Basic Chemicals, Fine and Specialty Chemicals, Performance Products and Phenolics. The Basic Chemicals section offers Sodium Nitrite, Sodium Nitrate, Nitro Toluidine, Fuel Additives and Nitrosyl Sulfuric Acid. Multibagger stock is up 158% in the span of one year while the counter is up 36% in the last six months.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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