Deepak Nitrite shares are in an intermediate uptrend as the specialty chemical stock has been making higher tops and higher bottoms for the last several months, said brokerage house HDFC Securities. The brokerage sees more upside on the multibagger stock in 1-3 months.
“The stock recently corrected from a high of 3020 tested in October 2021 and found support at the 2005 levels which is just above the 50 week SMA, indicating this is a strong intermediate support,” HDFC Securities said in a note on Deepak Nitrite which it has recommended as part of its emargin positional stock pick.
The brokerage further highlighted that the chemical stock has since then bounced back and has reversed its recent short term downtrend in the process. The stock recently broke out of the 2120-2400 range on the back of above average volumes.
With the intermediate technical setup too looking positive, HDFC Securities believes that Deepak Nitrite stock has the potential to move higher in the coming weeks and therefore recommends a buy with targets of ₹2662/2855 and stop loss of ₹2,280 with a time horizon of 1-3 months.
“Technical indicators are giving positive signals as the stock is trading above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue,” the note added.
Deepak Nitrite is a chemical manufacturing company. The Company’s segments include basic chemicals, fine and speciality chemicals, performance products and phenolics. The basic chemicals segment offers sodium nitrite, sodium nitrate, nitro toluidines, fuel additives, and nitrosyl sulphuric acid. The multibagger stock has surged 145% this year (year-to-date) whereas it is up 163% in a year’s period.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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