Don’t Miss This Largcap Chemical Stock for Trading

  • by THO
  • 1 week ago
  • news
  • 1

About the company:

Pidilite Industries (NS:) Limited manufactures adhesives and sealants, construction chemicals, craftsmen products, DIY products, and polymer emulsions in India. The company’s major brand is Fevicol which has become synonymous with adhesives to millions in India. Some of its other major brands are M-Seal, Fevikwik, Fevistik, Roff, Dr Fixit, Fevicryl, Motomax, Hobby Ideas, and Araldite. The stock is trading at a 3.65% discount to its 52-week high level. The 52-week high and 52-week low range is Rs 2,532 – Rs 1,501.

Technical observations:

One week time frame: (Chart 1)

On a weekly time frame, from the chart below, we can see that Pidilite stock is making an Ascending Triangle pattern. You should also note that the scrip made an all-time high of Rs 2,532, pulled back to Rs 2,300 level, and has bounced back after taking support at this level. We expect the share to move higher supported by higher volumes. Relative Strength Index (or RSI) is above 60 indicating positive momentum on the stock. Long-term investors should enter once the stock crosses Rs 2,481 level and stays above it. They should maintain the stop loss at Rs 2,285 on a weekly closing basis. Our view will negate this level.

One day time frame: (Chart 2)

On a daily time frame, Pidilite stock is in process of breaking out of a Symmetrical Triangle pattern. We expect it to further move upward aided by an increase in volume. We can also see that the scrip has taken able support on the 50-day EMA line. RSI is above 50 and the Moving Average Convergence Divergence line is above the signal line. It indicates positive momentum on the scrip. Positional traders can enter at current levels. However, they should keep a stop loss at Rs 2,300 on a daily closing basis. 

We anticipate the Pidilite scrip to maintain positive bias and move higher in the coming trading sessions. Short-term traders should enter only when the stock crosses and stays above Rs 2,440 levels. Strict stop loss should be maintained at Rs 2,380 on a daily closing basis.

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