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Nocil Ltd. Technical Analysis

Writer's picture: CA Vishnu AgarwalCA Vishnu Agarwal


Overview

Nocil Ltd. is a leading manufacturer of rubber chemicals in India. The company's stock has been on an upward trajectory, showing significant potential for further growth. However, recent market volatility has raised questions about the stock's future direction.


Technical Indicators:


  • Moving Averages: The stock is trading above its 50-day and 200-day simple moving averages (SMA), which is a bullish sign. The 50-day SMA has recently crossed above the 200-day SMA, forming a golden cross, which is often considered a strong buy signal.

  • Relative Strength Index (RSI): The RSI is currently around 60, indicating that the stock is neither overbought nor oversold. This suggests that there may be room for further upside potential.

  • Moving Average Convergence Divergence (MACD): The MACD is currently in a bullish phase, with the MACD line above the signal line. This suggests that the upward momentum may continue.

  • Bollinger Bands: The stock is trading near the upper Bollinger Band, which indicates that it may be overbought in the short term. However, the Bollinger Bands are widening, which suggests that the volatility may continue.


Chart Patterns:


  • Ascending Triangle: The stock has recently formed an ascending triangle pattern, which is a bullish continuation pattern. This suggests that the stock may break out to the upside.

  • Cup and Handle: Some analysts believe that the stock is also forming a cup and handle pattern, which is another bullish continuation pattern.


Support and Resistance:


  • Support: The stock has strong support around ₹270.

  • Resistance: The stock is facing immediate resistance around ₹300. If it can break above this level, then the next resistance level is around ₹330.


Overall:


The technical analysis of Nocil Ltd. suggests that the stock is in a bullish trend. The moving averages are in a bullish alignment, the RSI is neutral, and the MACD is in a bullish phase. The stock has recently formed an ascending triangle pattern, which is a bullish continuation pattern. The stock has strong support around ₹270 and is facing immediate resistance around ₹300. If it can break above this level, then the next resistance level is around ₹330.



Recommendations:


  • Investors: Investors who are bullish on Nocil Ltd. may want to consider buying the stock at current levels. The stock has strong support around ₹270, so investors may want to place a stop-loss order at this level.

  • Traders: Traders may want to wait for the stock to break out of the ascending triangle pattern before taking a position. Traders may also want to place a stop-loss order at the ₹270 level.


Disclaimer:

This is a technical analysis of Nocil Ltd. based on the current market conditions. The stock market is volatile, and the stock price may go up or down. This analysis should not be taken as financial advice.

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