Chart Check: 150% in 1 year! This chemical stock looks ripe to record fresh 52-week high; time to buy?

Deepak Fertilisers and Petrochemicals Corporation Ltd rose by nearly 150 per cent in a year compared to over 16 per cent rise seen in the Nifty50 in the same period. The stock witnessed some consolidation after hitting a 52-week high of Rs 724.80 on 19 April 2022, but the larger trend seems to be intact, suggest experts based on technical parameters.

Experts are of the view that the technical indicators are also positively poised to take the stock higher in the near term. A breakout from the Pennant pattern on the weekly charts could take the stock towards Rs 895, suggest experts.

Deepak Fertilisers, a high beta stock, has a market capitalization of more than Rs 7,800 crore on the BSE. It rose over 14 per cent in a month, and nearly 60 per cent in the last 6 months, data from Trendlyne showed.


Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) is among India's leading producers of fertilisers and industrial chemicals.

The stock trades at a price-to-earnings ratio of 15.4x which is above industry media, and lower than 5-year high of above 25x, data showed.

The stock trades above its 50, 100, and 200-DMAs but below short-term moving averages such as 5, and 10-DMAs.

RSI is mid-ranged at 54.3. RSI below 30 is considered oversold, and above 70 is overbought. Deepak Fertilisers' weekly average delivery volume is 54.5%, data from Trendlyne showed.

The stock has been in an uptrend so far in 2022, and recently witnessed a breakout from a pennant pattern on weekly charts and recorded a new high of Rs724.80 on the NSE last month.

“A Pennant is a type of continuation pattern formed when there is a large movement in a security followed by a consolidation period with converging trend lines followed by a breakout movement in the same direction as the initial large movement,” Jatin Gohil, Technical and Derivative Analyst at Reliance Securities, said.

“The key technical indicators are also positively poised. This could lead the stock towards Rs774 initially and Rs895 subsequently,” he said.

Gohil further added that on the lower side, the stock will find support around Rs560.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)