Gujarat Alkalies buzzing loud!
Gujarat Alkalies and Chemicals Limited produces caustic soda in India with an installed production capacity of 4,29,050 MT.
The stock of Gujarat Alkalies and Chemicals Limited opened gap up with more than 1% on Monday’s trading session and thereafter, went from strength to strength to make a fresh 52-week high of Rs 885 level. The stock is trading up by over 10% and interestingly, is seeing robust volumes on Monday. Volume for the day is the highest single-day surge since September 2021.
The stock after marking a swing low of Rs 598.30 as of February 24, 2022, has marked a sequence of higher high and higher low, which indicates a clear uptrend. The stock has jumped more than 45% from its recent swing low which stood at Rs 598.30 level.
Recently, it has witnessed a breakout of descending trendline formed by adjoining the highs of October and February on the weekly chart along with a wide range bar on the weekly chart. Moreover, the breakout was accompanied by above-average volumes, which is above the 50-weeks average volume.
As the stock is trading near its 52-week highs, it is indicating strong buying interest by market participants. Meanwhile, it is up by 39.86% on an MTD basis while on a YTD basis, it is up by 36.86%.
On weekly charts, the stock is trading above its all short-term and long-term moving averages. The 14-period Relative Strength Index (RSI) trading above 60, shows super bullishness and pointing northwards, which thus supports the positive bias in the stock. The lagging indicator MACD is also in-line with the bullish sentiment. The MACD line is trading above its signal line and zero line with a rising positive histogram. The directional movement index is also at a strong point. Directional indicators continue to remain in the ‘buy’ mode as +DI continues above –DI.
The above-mentioned technical evidence suggests that the stock is likely to continue its northward journey.
About the Author
Start Investing Now!
Open Free Demat Account in 5 mins