Stock Fundamentals

Trading pick of the week: Camlin Fine Sciences (₹140.4) Buy

Yoganand D | Updated on March 20, 2021

Investors with a medium-term perspective can buy the stock of Camlin Fine Sciences (₹140.4), a small-cap speciality chemicals stock. Since recording a 52-week low at ₹33 in March 2020, the stock has been in an intermediate-term uptrend, forming higher peaks and higher troughs. Medium- and short-term trend are up for the stock. A significant support at ₹100 had cushioned it in late January this year. Subsequently, the stock continued to trend upwards, resuming the intermediate-term uptrend. In late February, it surpassed the 21- and 50-day moving averages and extended the rally, backed with good volume. However, the stock had met with a key resistance at ₹160 in early March and was on a minor correction that lasted slightly over a week.

Last week, the stock took medium-term support in the band between ₹128 and ₹132 and bounced. On Friday, the stock gained 5 per cent with good volume, forming a bullish engulfing candlestick pattern on the daily chart, indicating bullish reversal and end of corrective decline. The daily relative strength index is likely to re-enter the bullish zone from the neutral region and the weekly RSI likely to continue to feature in the bullish zone.

Overall, the short to medium-term outlook is bullish for the stock of Camlin Fine Sciences. It has potential to trend upwards and reach the price targets of ₹155 and ₹161 with a minor pause at ₹155 over the medium term. Traders can buy the stock with a stop-loss at ₹130.

Published on March 20, 2021

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