Navin Fluorine: Positioned for a Strong Comeback; CRAMS to Play a Crucial Role
The stock is buzzing on the bourses as it gained 0.50% on Friday, breaking out of an inverted head and shoulders pattern with massive volume. It formed a strong, bullish candle.
In the final trading session of the week, the Indian benchmark indices are witnessing a sell-off, with Nifty slipping below the level of 22,650 and Sensex below the 74,600 mark. The majority of sectors were seen trading in the red, led by Nifty Pharma and Nifty FMCG, while Nifty Realty, Nifty Auto, and Nifty Energy were the only sectors seen trading in the green.
The performance of broader indices was buoyant, with Nifty Mid-cap and Small-cap trading higher by 0.8% and 0.14%, respectively.
Navin Fluorine in Focus
One stock that has caught the attention of investors is Navin Fluorine International (NFIL), one of the largest and most respected Indian manufacturers of specialty fluorochemicals. The company has four main strategic business units: Refrigeration Gases, Inorganic Fluorides, Specialty Fluorides, and Contract Development and Manufacturing Organization (CDMO).
Inverted Head and Shoulder Pattern
The stock is buzzing on the bourses as it gained 0.50% on Friday, breaking out of an inverted head and shoulders pattern with massive volume. It formed a strong, bullish candle and closed above the moving average ribbon, trading 4.21% above the 50DMA. The Bollinger bands are expanding, the MACD line moved above the zero line, and the RSI has shifted its range into the bullish zone. It also closed above the 23.6% retracement level of the prior fall, above the Anchored VWAP, and the KST is in bullish mode. In short, the stock has registered a strong bullish breakout.
Role of NFIL in CRAMS
Contract research and manufacturing services (CRAMS) is a major growing category worldwide, and NFIL produces many chemicals that are major compounds used in manufacturing key intermediates of several drugs. With the recent price correction in the stock price after the departure of its CEO, it seems to be overdone. Ultimately, now the focus would shift to earnings.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.