One Midcap Chemical Stock to Add in Your Watchlist

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UPL (NS: UPLL ) Limited manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals, and also offers crop protection solutions. The company’s products are sold in more than 150 countries. The stock is trading at a 17.23% discount to its 52-week high level. The 52-week range is Rs 865 – Rs 416.

Technical observations:

One week time frame: (Chart 1)

On a weekly time frame, we can see that UPL stock has made a Cup and Handle pattern. The scrip has immediate support at Rs 688 level. During the pullback, the share seems to have taken support on the 50-day EMA line and is looking to reverse. We should witness a breakout when the scrip is able to cross Rs 743 level and stay above it. Higher volumes should accompany this upward move. Currently, we are seeing a volume squeeze. Relative Strength Index (or RSI) is tending towards 50 which indicates resumption of positive momentum on the stock. Long term investors should enter above Rs 750 level. They should maintain the stop loss at Rs 692 on a weekly closing basis, below which our view will negate.

UPL1

One day time frame: (Chart 2)

On a daily time frame, we can see that UPL share is trading in a Falling Channel. The scrip appears to be taking support at Rs 688 level. It is currently in process of making a Rounding Bottom formation. You should also observe that the share has moved very close to its 50-day EMA line. The scrip has bounced back to its current level aided by above-average volumes. RSI is trending towards 50 which indicates the resumption of positive momentum on the stock. Positional traders should enter once the share is able to close above Rs 731. Stop-loss should be kept at Rs 702 on a daily closing basis.

UPL2

Conclusion:

We expect UPL stock to maintain positive bias and move higher from current levels. Short term traders should take a position at the current level and keep a strict stop loss of Rs 705 on a daily closing basis.  

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  • Sachin Sardana @Sachin Sardana
    sir pls tell as exide and itc...
    Like 1
  • Sachin Sardana @Sachin Sardana
    sir pls tell as exide and itc...
    Like 2
    • Roop Ram @Roop Ram
      ITC touch 239 soon keep short term target 269
      Like 0
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      100
  • Sachin Sardana @Sachin Sardana
    sir pls tell as exide and itc...
    Like 0

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