Thenali_Views

Manali Petro Chemical - Long - Flag Pattern Breakout

Long
NSE:MANALIPETC   MANALI PETROCHEMS
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Please find our analysis for Manali Petro Chemical Ltd!!!

Manali Petrochemicals is engaged in the manufacture and sale of Propylene Oxide (PO), Propylene Glycol ( PG ) and Polyols ( PY ), which are used as industrial raw materials.

Fundamentally the company Pros and Cons:

Pros:

1. Company has reduced debt.
2. Company is almost debt free.
3. Company is expected to give good quarter
4. Company has delivered good profit growth of 34.69% CAGR over last 5 years
5. Company has been maintaining a healthy dividend payout of 19.11%

CONS

1. The company has delivered a poor sales growth of 11.98% over past five years.

The Script was currently trading in the P/E lesser to the industrial P/E and PEG is also 0.21 and company was providing good dividend to its share holder and sales growth was raised compared in this Mar 2021 to Mar 2020 after which the corona lockdown was impacted.

Technically:

The script was in the advance stage and the script was forming Higher Highs and Higher Lows.
The script was good buildup in the resistance zone and breakout was happened .
But the breakout was happened in GAP up module hence, there may be retracement of the script.

Hence, we can wait for the retracement level up to the CPR .

We can go for buy above 84.50 ( upon retracement Completion)
SL - 73 ( Closes below in daily time frame)
Profit - Trail your SL accordingly.
Thanks,
Thenali views
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Comments

Yes it has given breakout with gap up but it also retested it's breakout point and now again i hope upward journey to be continued..🙌🏻
+1 Reply
@skydubey01 - if argrassive buyer they can buy at the price or long term investor also can buy at cmp... but for trader it's better to wait to retest level of 85....
+1 Reply
skydubey01 Thenali_Views
@Thenali_Views, yes correct.
Reply