Deepak Nitrite Ltd

NSE :DEEPAKNTR   BSE :506401  Sector : Chemicals

About Company: Deepak Nitrite has 4 major segments
1. Basic Chemicals: Nitrites, Nitro Toluidines & Fuel Additives
2. Fine & Specialty Chemicals: Xylidines, Oximes, Cumidines and speciality agro-chemicals
3. Performance Products: brightening agents used in papers and detergents
4. Phenolics: Phenol, acetone etc.

News in Deepak Nitrite: The media reported that the power outage in China is seen impacting chemical output by as much as 25%. China is in the grip of a power crunch as a shortage of coal supplies, toughening emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread curbs on usage.

Widening power shortages in China have halted production at numerous factories including many chemical manufacturers, which could benefit Indian speciality chemical makers. Deepak Nitrite is one of the leading suppliers of chemical intermediates. It has a diversified portfolio of intermediates that cater to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and overseas.

Daily Chart of Deepak Nitrite:

Technical Outlook of Deepak Nitrite:

Stock today on Monday 04-Oct-2021 locked in upper circuit on NSE, huge buying interest was seen in stock due to the news in the stock. If we look at the price action and technical setup stock is trading in super bull trend and huge buying interest is seen in the stock each small correction. Formation of Lower lows and Higher Highs is visible on the daily and week chart. Looking at the comparative relative strength index (CRS) stock has outperformed.

Hence we recommend to go long on stock at current levels @ 2590-2570 with stop loss placed below today’s lows at 2350. On the upside targets expected in the next 1-2 months are at 2800- 3000.