Stock Pick - Buy Rashtriya Chemicals & Fertilizers For Target Rs. 69.8/80Â -Â HDFC SecuritiesÂ
Stock Pick - Buy Rashtriya Chemicals & Fertilizers For Target Rs. 69.8/80 - HDFC Securities
* After correcting from a high of 112 touched in March 2018, RCF found support around the 22 levels in March 2020. These levels roughly correspond to previous major supports of the stock tested in 2013, implying that this is a strong support.
* The stock has since then rebounded and gradually made higher tops and higher bottoms over the last several months. Today the stock broke out of its recent narrow trading range of 51.7-61 on the back of above average volumes, indicating that the uptrend looks set to continue.
* Technical indicators are giving positive signals as the stock is trading above the 20-day and 50-day SMA. Medium term momentum indicators like the 14-week RSI are in rising mode and not extremely overbought. This indicates potential for more upsides.
* With the intermediate and long term technical setups too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy. Our entry levels with stop loss and targets have been mentioned above.
Weekly Chart
Buy Rashtriya Chemicals & Fertilizers Upto 2-6 Months @ Buy between CMP & 61.15 TGT 69.8/80 SL 52.5
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