Todays Pick

Deepak Fertilisers & Petrochemicals Corp (₹160.5): Buy

Yoganand D BL Research Bureau | Updated on December 07, 2020 Published on December 08, 2020

The stock of Deepak Fertilisers & Petrochemicals Corporation had been on a short-term downtrend after encountering a key resistance at ₹192 in late August this year. It later took support in the band between ₹135 and ₹140 in October and November and started to trend upwards.

Last week the stock surpassed a key resistance at ₹150 and took a pause. On Monday, the stock bounced back from ₹150 and gained 5.6 per cent, accompanied by above average volume. With this rally, the stock appears to have resumed the intermediate-term uptrend that started from the March low of ₹55. It trades well above the 21- and 50-day moving averages. There has been an increase in daily volume over the past two weeks.

Moreover, the daily relative strength index features in the bullish zone and the weekly RSI has entered the bullish zone from the neutral region. Both the daily and the weekly price rate of change indicators are hovering in the positive terrain, implying buying interest. Overall, the shot-term outlook is bullish for the stock. It can continue to trend upwards and reach price targets of ₹167 and ₹171 in the upcoming sessions. Traders can buy the stock with a stop-loss at ₹157.

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

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Published on December 08, 2020
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