BODAL CHEMICAL - CRUITAL LEVELS
Script is currently trading at cruital levels, medium term moving average (50) is just kissed longterm (200) moving average, any further correction may lead to breaking of long term support. This can make long term investor to exit. some level identified ( lvls in chart). Strickly no action if it goes below 70
Bodal chemicals has formed a flag pattern. The stock can be bought now with the stop loss of 160 and target of around 225 or higher. One can also wait for flag breakout for confirmation to preserve the capital.
In Dye & Pigments segment, scrip is doing well fundamentally. Reduced debt, higher turnover, good margins, reasonable book value, back in dividends, liquid volumes, it promises to go above 165 in few months timeframe.
Technically, it seems corrected, given a price and volume breakout on 06-03-2017, poised above MAs, enticing to enter and hold with patience.
Bodal Chemicals settled into a rectangular channel after breaking out of 96 levels. Today it has given a strong upside breakout out of this channel with good volumes. Looks good for making new highs. All corrections towards 120 levels can be used to accumulate.