Eight stocks to buy and sell today—12 February
Subscribe to enjoy similar stories. This chemical stock has remained under pressure, grappling with high volatility amid a weak Q3 earnings performance. The persistent decline has allowed bears to dominate, further amplifying the stock’s weakness in an already declining market.
The formation of a long-body candle signals a strong breakdown, suggesting the potential for further bearishness. Additionally, the steady decline in the last session has pushed the RSI below 40, reinforcing the likelihood of continued downward momentum. With a positive newsflow about securing a contract from Saudi Arabia and encouraging Q3 results, the profit booking in this counter could come to an end.
Overall , there has been some steady buying at lower levels as a hammer bottom was formed at the end of January, highlighting a bottoming formation. The Relative Strength Index (RSI) is seen rising ever since and is now inching higher. The prices are showing intention to step up and can be a good opportunity to go long at current levels.
Also read: FPIs dumped Indian financial stocks in January. But not all is bad for the sector. Pharma stocks have been under pressure and the fall after a brief rise seen earlier in the month is looking to tread lower.
The long body shown at the end of the decline on Tuesday highlights the underlying bearish momentum. As the attempt to move beneath the consolidation zone presents a strong case of bearishness. As RSI is already showing weakness the slip below 40 levels is inviting us to go short in this counter.
The stock gained 4% yesterday and has broken the upper channel of a falling wedge on the hourly chart. The breakout happened with strong volume, indicating bullish momentum. If sustained, this setup
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