NEOGEN — Re-Testing Key Breakout Zone | Rally Ready?Price is currently retracing/pulling back to retest the prior resistance-turned-support zone around ₹2,000 – ₹2,070. This retest presents a potential high-probability setup for bulls.
Breakout & Retest: Neogen Chemicals recently completed a strong breakout from a prolonged falling wedge/trendline consolidation, pushing up toward the major horizontal resistance zone near ₹2,390.
Battery Materials Capex Momentum: Neogen Ionic's greenfield facility (Pakhajan, Gujarat) is nearing completion for commercial-scale manufacturing of electrolytes (under exclusive tech licensing from Japan’s MUIS) and lithium electrolyte salts.
QIP Capital Raise & Strong Earnings: The company reported strong demand recovery in its core chemicals division and recently approved raising up to ₹600 Crore via a QIP to deleverage the balance sheet and fund its ongoing battery materials expansion.
Global Non-FEOC Tailwinds: Demand for non-China sourced lithium salts remains robust globally as battery/EV cell manufacturers secure supply chains for US/EU export compliance.
Look for bullish confirmation price action (hammer candle, strong engulfing bar, or daily volume spike) in the ₹2,000 – ₹2,075 area before going long.
Long
