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After months of consolidation, a breakout could be on the cards, potentially pushing the stock towards ₹2,100, the analyst said.
Deepak Nitrite is at a pivotal technical juncture, pushing for a breakout after months of consolidation between ₹1,920 and ₹2,000. While the volumes are still subdued, its momentum indicators are perking up.
Currently trading 1% higher at ₹1,986.80, Deepak Nitrite shares are attempting to push past resistance, although confirmation via volume is still pending, noted SEBI-registered analyst Vijay Kumar Gupta.
The Ichimoku setup shows price nearing a cloud breakout, while the lagging span is nearing a bullish zone, an indicator for trend shifts.
The commodity channel index (CCI) at 57.56 suggests strengthening momentum, and the on-balance volume (OBV) remains flat but stable, hinting at silent accumulation, he said.
Volumes at 147K are yet to signal conviction, but any expansion could validate the breakout. Key resistance lies at ₹2,009 and ₹2,060, while support rests around ₹1,935 - ₹1,950, Gupta said.
On the fundamentals front, tailwinds from the China+1 strategy and robust domestic demand in pharma and agro intermediates support long-term prospects. Q4 results were stable, with management reiterating capex plans. Investor sentiment on a medium-term basis is riding on expectations of brownfield expansion announcements at Dahej and Roha.
With the stock coiling for a move, a confirmed close above ₹2,000 backed by volume could unlock an uptrend, potentially toward ₹2,100. The analyst recommends a stop loss near ₹1,950.
Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day earlier, reflecting the analyst’s outlook.
Year-to-date, the stock has lost more than a fifth of its value.
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