Retail Research
Stock
Bodal Chemical
CMP
35.35
Recommended Action**
Buy bet 33.5 & 35.35
mentum stocks
Targets
38/42
SL*
32
Time Horizon
1-4 Weeks
* Stoploss as per daily closing basis. **= Recommended to stagger buying rather than entering entirely at CMP
Current Observation:
Bodal Chemicals has been continuously making higher bottoms and higher tops since early July 2015 after touching a low of 25.1, which is
a major bottom for the stock.
Todays breakout of a three day range after a recent fall indicates that the stock is raring to go higher.
Technical indicators are giving positive signals as the stock trades above the short term (13 day SMA) and medium term (50 day SMA)
moving averages. Momentum indicators like the 14-day RSI are in rising mode and not yet overbought. The 14-day RSI is also above its 9day EMA, which is a healthy signal for the stock.
The Relative Strength Comparative indicator too is beginning to rise, which implies that the stock is currently outperforming the Nifty
index.
The stock is also looking attractive on the weekly and monthly charts, which augurs well for the intermediate and long term uptrend of
the stock. Given the positive technical set up, we believe the stock has the potential to move higher in the coming days. Our entry levels
and targets have been mentioned above.
RETAIL RESEARCH
RETAIL RESEARCH