Stock Picks - Buy Rashtriya Chemicals and Fertilizers Ltd. For Target Rs. 90 - ICICI Direct
Technical Observations
The Agri related stocks are witnessing strong momentum in the last few weeks. We remain positive on RCF as it has rebounded after a higher base formation at the 50 days EMA (currently at | 73) and has recently registered a breakout above the triangular consolidation of the last two months signalling strength and offers fresh entry opportunity
The stock is expected to continue with its current positive momentum and head towards our target of | 90 levels as it is the 80% retracement of the recent decline (| 100-69) placed at | 93 levels
It has already taken 10 weeks to retrace just 61.8% of the preceding two weeks rally (| 53- 100) A slower retracement signals robust price structure and a higher base formation
The daily MACD is in up trend and is seen sustaining above its nine periods average thus validates positive bias
Buy Rashtriya Chemicals and Fertilizers Ltd. @ 80.00-82.00 TGT 90.00 SL 76.50
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