Wednesday, 15 January 2025

A TECHNICAL UPDATE ON AARTI INDUSTRIES LTD-16.1.2025

 

AARTI INDUSTRIES LTD


SECTOR: SPECIALITY CHEMICAL—IT IS A LEADING MANUFACTURER OF SPECIALITY CHEMICAL WITH A GLOBAL FOOTPRINT. 

TTM/EPS; -Rs.12.28 (+2.66%yoy)

TTM/PE: -35 /SECTOR PE: -64.50

BOOK VALUE: -Rs.150.15

PRICE TO BOOK VALUE: -2.87

DIVIDEND YIELD: -0.35%

FACE VALUE: - Rs.5/

EQUITY: - 181.26cr.

SHARE HOLDING PATTERN: - PROMOTER—42.60% ---FII---9.70%----DII---18.10% & PUBLIC---29.60%.

All-Time High: --1168 made on 19.10.2021.

All-Time Low: --00.68 made in 1996

Recent Low: - 334 made in 2020.

Open-411.70--High-432--Low-411.70—Close-429.75 on 15.1.2025. 

Support:410.35/402.10/390.25/383.25/379.75/370.50/356.45/337.65/334/325.

Resistance:433/438/442.60/456.50/459.75/480.40/529.40/534.90/541.65/559/563/571.65/593.85/606.55/630/648.90/668.85/677.65/714.85/718.80/728.90/757/769.25/773.05/782.55/807.90/819.90/840.85/880.50/900/924.40/950/990/1040.95/1118/1168. 

(Bold and underlined figures are most important)

It is on a very weak footing technically but it seems that downside risk is minimum at this juncture. Please note that it has bed of critical support in the range of 410.35---402.10---397.80---390.25 and it bounced back recently from this range only, if it sustains above this range on the closing basis then it is likely to surge ahead in coming days, weeks or months. But break & sustained close below 410.35 & 402.10 will be a warning sign and break & sustained close below 390.25 may witness an accelerated fall and can drag it down to much lower levels.

Similarly, moving up it will stiff resistance at 459.75---480---573.80, if it moves above 459.75 & 480 and sustain on the closing basis then it will give a good indication of moving up further and if it moves above 573.80 and sustain on the closing basis then it is likely to extend the up-move for sure and then the broad upside target could be 625---688---770---870---985----1013---1168(for in between target or resistance points please refer resistance table on the upside). 

In view of the above observation, it is suggested that investors can accumulate the stock now and, on the decline, but not below the range of 410---402 with a strict stop loss of 385 on the closing basis. The stock has the potential to double or more in 18-24 months’ time frame from now. Please note that the short stop loss would be 320 but the authentic stop loss would be 300. 

IMPORTANT: DO NOT TRADE OR INVEST WITHOUT STOP LOSS. 

NOTE: - It is a technical assessment of the stock as of now, the technical interpretation changes with the price movement and time, therefore it has to be reviewed at regular intervals, furthermore investors are advised to look into fundamental, financial details of the company because that too keeps on changing and last but not the least management perception for the future of the company before taking investment decision.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view. 

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS. 

Note: Price stated here are of spot market. 

Contact me for strategic guidance to enter and exit trade. 

Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.

 

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