Shares of Rashtriya Chemicals and Fertilisers Ltd. (RCF) have been given a 'Buy' call by HDFC securities for 3 months. The target set on the scrip is Rs. 89, Rs. 95.5 while the last traded price is Rs. 83.2, implying potential gains of 14.78%. The stop loss suggestd for the 'Buy' is Rs. 76.5.
The stock's weekly timeframe chart is indicative of a sustainable upside bounce over the last few weeks. The brokerage and research firm suggested RCF as its MTF pick in a report dated January 13, 2022.
Rashtriya Chemicals- Technical analysis
"The stock price is now placed at the edge of showing upside breakout of the significant hurdle of down sloping trend line (connecting previous swing highs and a larger consolidation of the last few months) at Rs 83-84 levels. Hence, a sustainable move above the hurdle is likely to open a sharp upside momentum for the stock price ahead. Volume has started to expand along with upmove in the stock price. Weekly RSI and weekly ADX/DMI indicate chances of further strengthening of upside momentum in the stock price ahead. The overall chart pattern of RCF indicates long trading opportunity", mentions the brokerage.
About Rashtriya Chemicals
The Mini-Ratna Central Public Sector Enterprise (CPSE) was established by the GoI in 1978 for carrying out the business related to production and marketing of fertilisers, industrial chemicals and derivatives. The company is a divestment bound candidate of the government of India wherein the government will offload 10% of its stake in RCF. As of December 2021, the government's holding in the company is 75%.
The views and recommendations made in respect of the stock is taken from the brokerage report. Readers and investors should not construe it to be an investment advice. Kindly engage in your own research and due diligence.