The stock of chemicals jumped 65% in one month. HDFC Securities sees more upside in 3-6 months
Shares of Excel Industries are up more than 76% in a year, while the stock has jumped more than 65% in the past month alone. Now, national brokerage HDFC Securities sees more upside in Excel Industries stocks as it has a “Buy” tag on chemical stocks.
The brokerage’s bullish stance comes with targets for ₹1,650 and ₹1,795 with stop loss of ₹1,195 with a time horizon of three to six months as he believes the overall chart pattern for Excel Industries Ltd indicates a long trading opportunity.
“We are seeing a decisive upside break of crucial overhead resistance from the ascending trendline at ₹1320 levels (resistance according to the polarity shift concept) last week and the stock price closed higher. This is a positive indication and we can expect a further rise in the coming sessions,” the note added.
Volume rose sharply on the bullish breakout of a significant hurdle. This action indicates aggressive bull participation. Additionally, the weekly 14-period RSI rose above 75 levels, reflecting the existence of strong bullish momentum in the stock price, the brokerage pointed out.
The chemical maker’s diverse product line and recent entry into the polymer additive and pharmaceutical input segments will diversify revenue and reduce reliance on agrochemicals, according to HDFC Securities.
“Product additions and expansions and positive developments in the environmental pharma and biotech segment would argue for a revaluation of the stock over the long term.”
The flagship chemicals division of Excel Industries Ltd (EIL) comprises a diverse range of products, namely agrochemical intermediates, pharmaceutical intermediates, polymeric input materials, specialty and performance chemicals. It provides a range of penultimate pharmaceutical intermediates and veterinary APIs and APIs.
The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
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