Deepak Nitrite stock is worth watching as the stock is forming a 9-week, 14% deep Flat Base. The current price is only 9% away from its ideal buy price of INR 1988. Aggressive investors could use any tight area breakout inside the base as an opportunity to initiate a small position. A conservative approach may be to add the stock to your watchlist so that you are ready to pounce if it breaks out to the traditional entry point.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 1.5% away from the 10-week moving average.
Deepak Nitrite has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 80. In the last twelve months, the stock has rallied over 277.6% as compared to 49.5% for the Nifty500.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Deepak Nitrite can maintain this outperformance, it could make sense as a CANSLIM trade.
Deepak Nitrite stock has strong institutional support. The Accumulation/Distribution Rating of 'A-' represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.
On the earnings front, Deepak Nitrite has an excellent EPS Rank of 95, which indicates consistency in earnings. The earnings and sales for the stock have grown by 142% and 43%, respectively over the past three years. Its 3-years earnings stability is 31, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 65% and 34%, respectively. The 5-years earnings stability is 50. The return on equity for the last reported year is 40%.
The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 42. The current price of Deepak Nitrite is -5% off from its 52-week high price and 296% above its 52-week low price.