Chart Check: 400% from March 2020 lows, why NOCIL makes a compelling buy-on-dips stock

NOCIL, part of the specialty chemicals space, rallied more than 400 per cent from its March 2020 lows and the momentum is likely to continue based on technical trends, suggest experts.

NOCIL rose from Rs 44.70 recorded on 24 March 2020 on the BSE to Rs 252.80 registered on 13 June 2022. The steep price rise effectively translates into an upside of more than 463 per cent.

Investors looking to put fresh money can invest now or on dips for a possible target of Rs 325-400-450 in the next 6 months, suggest experts.

However, in the past one year the stock seems to have lost some momentum, but it has remained resilient amid the selling pressure. The stock rose more than 11 per cent in a month compared to a flat Nifty50 with a negative in the same period.

The stock hit a 52-week high of Rs 321 on 12 October 2021 but failed to hold on to the momentum. It took support near Rs 190 levels in February 2022 before bouncing back.

The stock surpassed its previous peak placed at Rs 262 in January 2022 and Rs 253 in April 2022 in June 2022 with strong volumes which suggests support at lower levels.


On the price front, the stock is above 50,100 and 200-DMA but below short-term moving averages of 5,10 and 12-DMA.

“The stock price started its upmove from Rs 44.70 (March 20) to Rs 321 (October 2021), making series of higher bottoms and higher tops. During the move the Stock continuously traded above the averages as seen in the chart,” Bharat Gala, President - Technical Research, Ventura Securities, said.

“Thereafter, the stock made lower tops and lower bottoms, correcting to Rs 191 (February 2022). The steady uptrend from Rs 44.70 (March 20) to Rs 321 (October 21) suggests continuous buying interest,” he added.

Recently, the stock gave range breakouts above previous highs of Rs 253 and Rs 262 making a high of Rs 274 accompanied by supportive volumes, highlighted Gala.

The Aroon Up/Down, PVT, KST & MACD Indicator suggest a possibility of a strong upmove in the coming days.

“The possible targets are Rs 325-400-450 in the next 6 months. If the stock price corrects downwards the buy levels are (Rs 255-242)-Rs 232- (Rs 223-217). Stop loss to be observed in the trade is Rs 205,” recommends Gala.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)