Deepak Nitrite - Triangle Breakout - LongHi Guys,
Welcome to Thenali Views,
We are going to analysis the technical analysis of Deepak Nitrite and Fundamentally the Company was very strong and for Wealth Creation, this script is one of the best example.
Technical Analysis for Short Term:
Script has formed in Triangle Pattern and Breakout has happened both in weekly and daily time frame. Trend of the stock was bullish and still the Last line of Defense was not broken and Trending Candle aren't smaller and moving big.
Script was also broken the CPR level and moving higher high.
Support: 1994 and 1771
Last line of Defense : 1880 ( Which can act as support)
Resistance: 2157.
Buy: Above 1980 - 2000 ( Once the Script touches the retrace back)
SL - 1935.30 ( Closes in the daily time frame)
Target - 2155
Fundamentals:
The Company was in the business of Industry Chemical Sector and its has 4 Major Segments:
1. Basic Chemicals: Nitrites, Nitro Toluidines & Fuel Additives
2. Fine & Specialty Chemicals: Xylidines, Oximes, Cumidines and speciality agro-chemicals
3. Performance Products: brightening agents used in papers and detergents
4. Phenolics: Phenol, acetone etc
Its key market share in Sodium Nitrate which tune to 80%
60% global share in DASDA
75% global share in optical brightening agent
Advantage:
Company has reduced debt.
Company is expected to give good quarter
Company has delivered good profit growth of 64.84% CAGR over last 5 years
Company has a good return on equity (ROE) track record: 3 Years ROE 36.65%
Market Cap of the Company: Rs.28223 Crores as on Today
Company Current P/E 28.81 which lower than the Industry P/E 28.93
Company PEG was 0.44 which also look attractive
Sales growth and profit growth of the company is increasing YOY basis.
Conclusion:
Both Technically and Fundamentally the Deepak Nitrite will be good company to invest.
For Wealth Creation, Invest in every Dip and for trading... Buy Low and Sell Higher as the technical analysis.
Regards,
Thenali Views
Disclaimer: Kindly do your own analysis before executing the trade or
contact your financial advisor. This analysis is only for the Educational Purpose.
