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    Chart Check: This fertiliser stock hit a fresh record high in August; what to do post 40% rally this year?

    Synopsis

    The stock has recently made a higher bottom formation pattern on the daily chart taking support near the Rs 990 zone and given a decent pullback with improving bias moving past the significant 50 EMA level of Rs 1,002.67, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, said.

    Chart Check: This fertiliser stock hit a fresh record high in August; what to do post 40% rally this year?iStock
    Coromandel International, part of the fertiliser industry, has rallied by about 40 per cent so far in 2022. The momentum is likely to continue in the near future based on technicals

    The fertiliser stock hit a fresh record high of Rs 1,092 on 17 August 2022, but failed to maintain the momentum. The stock rose from Rs 756 recorded on December 31, 2021 to Rs 1,045 on August 23, 2022, which translates into an upside of 38 per cent.

    Short-term traders can look to buy the stock now or on dips for a possible target above Rs 1,100 in the next 3-4 weeks, suggest experts.

    After hitting a record high earlier in August the stock saw some profit booking but the 50-DMA acted as stiff support and placed the stock in a rising trajectory again.

    Coromandel recently took support near the 50-DMA placed at Rs 998 on 23 August and bounced back which suggests demand at lower levels.

    On the price front, the stock is trading above the 5,20,30,50,100, and 200-DMA which is a positive sign for the bulls.

    The Relative Strength Index (RSI) is at 53.7. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its Center Line, but below the signal line.

    image (56)Agencies

    “The stock has recently made a higher bottom formation pattern on the daily chart taking support near the Rs 990 zone and given a decent pullback with improving bias moving past the significant 50 EMA level of Rs 1,002.67,” Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, said.

    “The RSI has indicated a trend reversal and is on the rise and has potential to rise further in the coming days,” she said.

    “With the chart looking attractive, we suggest traders to buy and accumulate this stock for an upside target of Rs 1,160 keeping the stop loss of Rs 900 in next 3-4 weeks,” recommends Parekh.

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




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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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