Buying in index heavyweights and supportive domestic cues lifted key equity indices on Wednesday. The BSE Sensex surged 582.87 points, or 0.99 per cent, to close at 59,689.31. The NSE’s Nifty advanced 159 points, or 0.91 per cent, to settle at 17,557.05.
Select chemical stocks such as Navin Fluorine International, Deepak Nitrite and Tata Chemicals were on investor radar on Wednesday. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday’s trading session:
Navin Fluorine International | Buy | Target Price: Rs 4,800 | Stop Loss: Rs 4,000
Navin Fluorine has witnessed a gradual erosion from its peak. It is showing signs of bottoming out. The stock is consolidating in the Rs 4,050-4,000 range, which is a strong support area, as seen on the daily historical chart. The stock traded above its key moving averages, with some improvement in the structure showing an immense upside potential. A decisive move above the Rs 4,375 level can lift the stock further to Rs 4,800 level in coming days. One can place stop loss at Rs 4,000.
Tata Chemicals | Range-bound | Resistance: Rs 1,020 | Support: Rs 930
Tata Chemicals remained confined within the broader range of Rs 1,020 -930 in the last few weeks. The occurrence of a series of Doji candlestick patterns, with prices enclosed within its 100 and 50 DMA’s zone, indicate a range squeeze that could see a breakout or breakdown from the range soon. A breakout above Rs 1,020 would lead prices on the upside towards the Rs 1,145 level. A breach below the Rs 930 level could induce selling pressure towards Rs 850-840 levels.
Deepak Nitrite | Cautious | Resistance: Rs 1,910 | Support: Rs 1,700
Deepak Nitrite remained sideways in the last few weeks, as it failed to give any directional move. On the daily chart, the stock is facing a stiff resistance at Rs 1,910-1,900 levels, where the 20- and 50-DMAs are also placed. The daily RSI is also hovering near the 50-mark, suggesting ambiguity on the directional move. On the downside, the stock has formed a key base around Rs 1,700-1,730 levels. A decisive move in either side is required for any unidirectional move.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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