PCBL, Deepak Fertilisers up 100% in less than 3 months; trading guide here

Key levels to watch out on PCBL, Deepak Fertilisers: PCBL can rally another 21% from here on; while Deepak Fertilisers is seen testing key resistance at Rs 1,076, show charts.

The equity market has rallied strongly in the Modi 3.0 era so far. From the Lok Sabha Election Result Day, the Sensex has surged 12.5 per cent or over 9,000 points in less than 3 months. Similarly, the broader BSE 500 index has rallied 15.2 per cent to 37,000 levels on hopes of continued reforms and stronger economic growth.

Among individual stocks in the BSE 500 arena, as many as 240 have outperformed the benchmark index by rallying in excess of 15.2 per cent each. PCBL and Deepak Fertilisers are the top movers, up over 100 per cent in this period. That apart, India Cements and Authum Investment & Infrastructure have surged up to 96 per cent each.

 

Among others shares of Bombay Burmah Trading Corporation, Kaynes Technology, Firstsource Solutions, HFCL, Oil India, Mazagon Dock Shipbuilders, Granules India, BASF India, Suzlon Energy, Suven Pharma, Godrej Agrovet, One97 Communications (Paytm) and Rail Vikas Nigam (RVNL) gained in the range of 60 - 83 per cent. 

On the other hand, mere 5 out of the BSE 500 stocks have delivered negative returns in excess of 10 per cent so far in the same period. Hindustan Zinc down 20 per cent and Thermax down 15 per cent were the major laggards.

Meanwhile, as an investor what should be your trading strategy in the top performers so far. Should you be buying at the current levels or wait for a dip to enter? Here's what the chats hint:

PCBL

Current Price: Rs 441

Upside Potential: 21%

Support: Rs 411; Rs 390

Resistance: Rs 464; Rs 492

PCBL, formerly known as Phillips Carbon Black, has gained momentum from mid-July onwards post the breakout above its 100-DMA (Daily Moving Average), which now stands at Rs 283. At current levels, the stock is trading almost 56 per cent higher when compared to its 100-DMA. Further, the price-to-moving averages action is favourable across time-frames; with short-term moving averages above long-term moving averages. CLICK HERE FOR THE CHART

The long-term chart shows that the PCBL stock is likely to trade with a bullish bias as long as the stock holds above Rs 410; below which key support stands at Rs 390. On the upside, the stock can potentially rally to Rs 534; with interim resistance possible around Rs 464 and Rs 492 levels. 

Deepak Fertilisers Petrochemicals Corporation

Current Price: Rs 1,060

Upside Potential: 10.4%

Support: Rs 1,040; Rs 975

Resistance: Rs 1,076; Rs 1,116

Deepak Fertilisers had witnessed a lacklustre 2023, with the stock seen consistently languishing below the long-term moving averages. However, the recent rally has helped the stock overcome major hurdles on the weekly scale. 

The stock at first broke above its 200-DMA on June 10; and thereafter went on to conquer its 100-WMA (Weekly Moving Average) in the week ended June 21. Post which, the stock has witnessed a steep rally. CLICK HERE FOR THE CHART

On the upside, the stock at present is seeing testing resistance at the Golden ratio 1.618 of the previous quarter's trading range at Rs 1,076. Break and sustained trade above the same can trigger a rally towards Rs 1,170; with interim resistance seen at Rs 1,116.

The long-term chart shows that the bias for the stock is likely to remain upbeat as long as it holds above Rs 900; with near support visible at Rs 1,040 and Rs 975 levels.