The stock hit a record high of Rs 1117 on 1st September 2023. Short-term traders can look to accumulate the stock on any dips towards 1000 levels for an upside target of Rs 1300 in the next 1-2 months, suggest experts.
The stock has been trading in a rising channel since 2014-2015 on the monthly charts. It has always bounced back after retesting the lower trendline of the channel pattern.
The fertilizer stock has made a strong base above 840 levels in the December 2022-March 2023 period, which also coincides with the lower trendline of the rising channel.
After making a 52-week low of Rs 838 the stock bounced back to hit a fresh record high in August. It surpassed the earlier swing high of Rs 1094 recorded on 1st September 2022.
The stock has risen more than 4% in a week and over 17% in the last 3 months.
In terms of price action, the stock is trading well above most of the short- and long-term moving averages on both monthly and daily charts.
“Agri chemical stocks have started to pick up momentum, and Coromandel is one of the strongest stocks compared to its peers. The stock is trading in a rising channel which was incepted in the year 2015,” Kapil Shah, Technical Analyst, Emkay Global Financial Services Limited and Trainer at FinLearn Academy, said.
Since then, the stock has respected the lower arm of the rising channel which is acting as a big support level for the stock.
“In the recent correction, the stock has tested the trendline which coincides with the previous turning point. A breach of the immediate falling trendline validates the support,” he said.
“The stock looks good to accumulate in the range of Rs 1090 to Rs 1050 with a stop loss of Rs 1020 on a closing basis. On the higher side, the stock has the potential to move up to Rs 1,300 level in the next 2 months’ time duration,” recommended Shah.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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