This multibagger chemical stock is HDFC Securities' top pick, sees upside in 3 months
Premium- The brokerage believes the multibagger chemical stock has the potential to move higher in the coming weeks and therefore has recommended a buy
Vinyl Chemicals share price is in an intermediate uptrend as it has been making higher tops and higher bottoms for the last several months, highlighted domestic brokerage and research firm HDFC Securities.
Trend of the chemical stock has turned positive after crossing its intermediate highs. The counter has also retraced faster by its earlier move suggesting bullishness in the stock, the brokerage said in a note on its technical positional stock pick.
With the intermediate technical setup too looking positive, HDFC Securities believes the multibagger stock has the potential to move higher in the coming weeks and therefore has recommended a buy on Vinyl Chemical shares. Its entry levels/buying range of ₹258-267.3 comes with targets of ₹290/345 and stop loss of ₹245 keeping in mind the time horizon of one-three months.
“Major momentum oscillators are showing positive indications. RSI (Relative Strength Index) oscillator is placed above 70 and rising upwards, Indicating strength in the current uptrend. After bouncing back, the stock has also broken out of the ₹215-258 levels last week on the back of above average volumes," the note further added.
Technical indicators are giving positive signals as the stock is trading above the 20 day and 50 day SMA, the 14-day RSI has bounced back from oversold levels and is in rising mode now and the 20 day Bollinger Bands have started widening indicating that volatility is expanding as the stock is moving out of a range, HDFC Securities highlighted.
Shares of Vinyl Chemicals have given multibagger return of over 132% in a year whereas the stock is up 69% in the last six months.
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The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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