GNFC- Consolidation before breakout GNFC consolidated for approximately an year and now consolidating at the breakout levels.
Stock can give 860/980 levels
Gnfcanalysis
GNFC Potential BreakoutThe idea here is about GNFC (Gujarat Narmada Valley Fertilizers & Chemicals Ltd):
Gujarat Narmada Valley Fertilizers & Chemicals Ltd.is engaged in the manufacturing and marketing of chemicals, fertilizers and information technology.The products and services offered by the company include Fertilizers- GNFC is one the leaders in the domestic fertilisers industry. The company manufactures and markets fertiliser such as urea, ammonium nitrophosphate and calcium ammonium nitrate under the brand NARMADA. It is also engaged in importing urea, diammonium phosphate (DAP) and muriate of potash (MOP).Chemicals- The company has also set up core chemical and petrochemical plants that manufactures products such as methanol, formic acid, nitric acid, acetic acid and many more
My view is Bullish for the below observed technical factors.
Points as per TA observed on a Weekly,Daily & Hourly Chart:
1. Contracting or symmetrical triangle observed on a weekly chart as per below:
2. Doji/Spinning top candle formation on weekly chart which indicates the continuation of trend (upward) as per below:
3. Apex point Breakout & Support established with huge breakout in volume & Bullish pin bar candle formation on a daily chart observed as per below:
4. Bullish Gartley, Bearish Anti Crab & Bullish Navarro 200 pattern formations completed within the range of contracting triangle with Gartley & Navarro 200 targets been still active on a weekly chart as per below :
5. Falling wedge observed on 1H chart with breakout & reconfirmation as per below:
6. Inverse Head & Shoulder formation in progress on 1H chart with completion of left Shoulder & Head completed with 20 & 200 EMA support established as per below :
Inverse H&S target once completed will lead to breakout of contracting triangle on weekly chart
7. Trading above 20 & 200 EMA on a weekly & 20 EMA support established on daily chart at the time of publishing.
8. Ichimoku Cloud analysis: Kumo Breakout & Kumo Twist on a weekly is a strong upward momentum & Daily is Neutral at the time of publishing.
9. RSI is at 52.64 on a Daily Chart and 53.03 on weekly chart at the time of publishing.
10. MACD almost touching the signal line on daily chart & below signal line on a weekly chart at the time of publishing. There is a high possibility of MACD crossover on weekly chart.
11. Hull Moving average & other averages are strong buy on daily & monthly. However Hull moving average is a sell on weekly and other averages is a Strong buy.
12. ADX ( Average directional index ) trend strength is at 14.02 on a weekly & 12.83 on daily chart, which indicates a absent or weak trend ( ADX between 0-25 is a Absent or weak trend).
13. No divergence observed.
Projected Target with %: provided in chart.
Stop Loss: provided in chart.
Entry point: Conservative trades can wait for breakout & retest of contracting triangle. Aggressive & risk trades can enter at CMP.
Note: The center has approved an additional Subsidy on fertilizers for winter planting season.
Disclaimer: “The above is an Educational idea only and not any kind of financial or investment advice. So
Please do your own DD (Due Diligence) before any kind of investment”.
Do you like my TA & ideas!!
Want to keep yourself updated with current market action? Then don’t forget boost & subscribe for more analysis. The more boost & comments further more motivation for publishing.
Do leave your valuable feedback & comments for any improvisations.
Cheers.
GNFC analysisFC - Gujarat Narmada Valley Fertilizers & Chemicals Ltd. today
ema9: 600.90
ema20: 638.10
ema50: 669.55
ema100: 676.55
ema200: 645.15
ROE 5yr: 17%
Strong EPS growth over the last 5yrs
ROCE 5Yr: 20%
Debt to Equity: Zero
Strong cash flow from operations in the last 2yrs
Increasing Annual Net profit
Pledged percentage: Zero
A good growth stock which should realise its true potential
Stock P/E: 4.50 vs Industry P/E: 12.9(P/E ratio under 10)
Technically speaking the stock was in a downtrend until today where it has shown some hope of reversal.
Support Area: 505-533
Strategy: Look to buy at support area.
Recommendation: The stock has been in a downtrend since 25.10.2022. Support area being at a very reasonable distance the ideal call would be to wait for price to enter the support zone. However we have witnessed a Bullish Engulfing reversal candlestick on the daily time frame which creates a good opportunity to enter this counter. The stock has made a low of 549.15 and a high of 579.30 today before closing the day at 576.10.
We recommend a buy above 579.30 for a target of 735(Initial Target) and then on move towards our long term Target of 900+. Stop loss can be place below 505. For those who would like to follow the Price action set up we recommend a buy above 579.30 with a stop loss of below 549 for a Target of 609(1:1) and the next Target of 639(1:2)
Intraday traders book your profits at the earliest and trail your profits.
Swing Trade - Breakout of Resistance - GNFCShort term analysis of GNFC
buy above 722
SL : 677.95
Target : 831.75
Risk to reward - 1:2.5
GNFC - short term tradeBuy GNFC @/above 657
Intraday/Short term Target 689
Stop Loss 650
Profit approx. 5%
Medium term Target 912
Stop Loss 635/below
Profit approx. 38%
GNFC to fly, Fresh BO will take it to the sky.Sometimes if may test your patience but eventually in most cases target will be hit. Today GNFC CMP 515.55 closed above the target given in November. GNFC was first given last year near 269 levels.
GNFC today made a peak of 535. If it manages to cross 535. GNFC can go towards 555/561 levels. Consider 490 as new trailing stop loss.
