Opportunity Awaits for Traders in This Midcap Chemical Stock

  • Stock Market Analysis
  • Editors Pick

About the company:

Deepak Nitrite Ltd (NS: DPNT ) is a manufacturer of organic, inorganic, fine, and specialty chemicals. The company also produces a wide range of intermediates for use in industrial explosives, paints, cosmetics, polymers, optical brighteners, and others. The stock is trading at a 26.5% discount to its 52-week high level. The 52-week high and 52-week low range is Rs 3,020 – Rs 786.

Technical observations:

One week time frame: (Chart 1)

On a weekly time frame, from the below chart, you should note that DNL stock broke an important resistance range of Rs 1,970 and Rs 2,030 in the week of July 26, 2021. Since then, it made an all-time high of Rs 3,020 and pulled back. The scrip appears to have taken support at Rs 2,030 level and bounced back. In the current week, the stock has broken above an intermediate resistance level of Rs 2,175 level. We anticipate seeing bullish movements supported by an increase in volumes. The relative Strength Index (or RSI) line has taken support at a level of 50 and has bounced back. It denotes positive momentum on the share. Long-term investors can enter at the current level. Stop-loss should be maintained at Rs 2,045 on a weekly closing basis.
DN1

One day time frame: (Chart 2)

On a daily time frame, DNL scrip broke down from the level of Rs 3,000 and had taken support at Rs 2,045 level. Since then, the share has been trading in a Falling Channel and it has bounced back and has closed above a key resistance level of Rs 2,210. You should note that above-average volumes support this upward movement. We expect the stock to further move higher aided by volume growth. RSI line has taken support at a level of 30 and has bounced back and is leaning towards 50. Positional traders can enter once the stock crosses Rs 2,295 and stays above it. They should maintain the stop loss at Rs 2,058 on a daily closing basis.
DN2

Conclusion:

We expect DNL scrip to maintain positive bias and head higher in the coming sessions. Short-term traders may enter at current levels. However, they are reminded of a strict stop loss at Rs 2,126 on a daily closing basis.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Sanjay Khodape @Sanjay Khodape
    what's ur opinion about copla
    Like 0
  • Sanjay Khodape @Sanjay Khodape
    what's ur opinion about copla
    Like 0
    • Sanjay Khodape @Sanjay Khodape
      cipla
      Like 0
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      Please refer my article on pharma stocks
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
  • Sanjay Khodape @Sanjay Khodape
    what's ur opinion about copla
    Like 0
  • Àñìl Vàrmâ @Àñìl Vàrmâ
    sir hame bhi sajsan do
    Like 1
  • Àñìl Vàrmâ @Àñìl Vàrmâ
    sir hame bhi sajsan do
    Like 0

Related Articles