HDFC Securities sees over 15% upside in this chemical stock
With the time frame of up to 3 months, domestic brokerage and research firm has recommended chemical industry company Sudarshan Chemical as its top MTF stock pick. Sudarshan Chemical is a leading player in the Indian colour pigment industry and is also among the top four players globally.
The brokerage in a note on Wednesday said that the daily timeframe chart of Sudarshan Chem, which was moving for sideways for few sessions has a breakout with higher volumes. The chemical stock has also breached above downward sloping trend line. The brokerage has observed a formation of bullish pattern on daily and weekly time frame.
It added that momentum oscillators like relative strength index (RSI) and MACD (Moving average convergence divergence) are giving bullish indication suggesting bullish movement for the stock for few more weeks.
“The overall chart pattern of Sudarshan chem indicates long trading opportunity. One may look to create positional long as per the levels mentioned above," HDFC Securities note stated.
The brokerage has a Buy recommendation on the chemical stock with target price of ₹700, 780 with add on dips suggestion at ₹635 per share and stop loss of ₹618.
Sudarshan started manufacturing pigments in 1952 with a handful of inorganic pigments and has since expanded with a breadth of products that cover classical azo pigments, high performance pigments, effect pigments and pigment dispersions. It primarily serves the coatings, plastics, inks and cosmetics markets. The stock has surged over 40% this year (year-to-date or YTD).
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.