Stock to buy: Anand Rathi recommends Sumitomo Chemical as its stock pick for the month
₹418 apiece on the BSE, extending gains for the third straight session. Sumitomo Chemical shares have gained 7% in one week, while the stock has rallied 12% in the past three months. Brokerage firm Anand Rathi has recommended Sumitomo Chemical India shares as its stock pick of the month.
The brokerage believes the Sumitomo Chemical shares are technically placed to see a decent upward momentum with an upside potential of 16% within a timeframe of 1 month. Also Read: Multibagger stock: Hitachi Energy zooms 8% as Q4 profit doubles, up 190% in a year “Sumitomo Chemical India has recently experienced a significant decline and is currently trading around ₹418, near its 200- day Exponential Moving Average (DEMA). This proximity suggests a potential support level.
Furthermore, the daily MACD indicator has formed a bullish crossover, and a bullish Bat pattern has emerged on the weekly chart, both indicating a potentially favourable opportunity for investors," Anand Rathi said in a note. Given these developments, the brokerage firm recommends traders and investors to consider entering long positions in Sumitomo Chemical shares within the ₹410 - ₹420 range. “Our target for this trade is ₹485, aiming to capture potential gains from the anticipated upward movement.
To manage risks effectively, we suggest setting a stop-loss at ₹380 based on daily closing prices, ensuring prudent risk management throughout the trade," said the brokerage firm. Also Read: Expert view: Don't try to time the market; expect value stocks to perform better, says Sujan Hajra of Anand Rathi Sumitomo Chemicals is also Anand Rathi’s top pick in the Agrochemical sector. In a research note in January 2024, the brokerage said it believed the company was poised to
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