Himadri Speciality Chemical (₹55.2): Buy

Yoganand D BL Research Bureau | Updated on September 28, 2020 Published on September 28, 2020

Investors with a short-term horizon can buy the stock of Himadri Speciality Chemical (HSCL) at current levels.

The stock has been in an intermediate-term uptrend since it recorded a 52-week low at ₹27 in late March this year. After breaking a key resistance level of ₹50 in mid-August, the stock encountered next resistance at around ₹63 in late August.

Following a short-term corrective decline, the stock took support at ₹50 over the past one month and resumed the uptrend recently.

On Monday, the stock jumped 9 per cent accompanied by above average volume, surpassing the moving average compression (21-, 50- and 200-day moving averages) at around ₹52. The daily relative strength index is likely to enter the bullish zone.

Further, the daily price rate of change indicator has entered the positive territory implying buying interest. The stock's recent rally appears to be strengthened the uptrend. Traders can aim for targets of ₹57.5 and ₹59 with a stop-loss at ₹53.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on September 28, 2020
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