🔍Technical Analysis: Support-Driven Rebound in Sight
Deepak Nitrite Ltd has maintained long-term strength, trending upward for over a decade with a clear pattern of higher highs and higher lows. The stock reached an all-time high of ₹3,020 in October 2021 but later corrected sharply to the ₹1,700–₹1,800 zone, where it has found strong support multiple times.
In July 2024, the stock attempted a breakout and touched ₹3,169 but faced rejection due to an overbought RSI (above 75), triggering a sharp fall. In February 2025, RSI signaled oversold levels (below 25), aligning with strong price support at ₹1,800 — indicating a potential reversal.
💡Notably, the recent decline in stock price has been largely driven by weaker financial performance in recent quarters. However, the stock has now taken support at its historical levels, showing signs of stability and renewed interest.
With Q4 FY25 results scheduled for April 30, 2025, any positive surprise could act as a catalyst for a strong upward move.
📌Key Technical Levels:
Support Zones: ₹1,700–₹1,800
Resistance Targets: ₹2,500 (Initial), ₹2,800 (Secondary), ₹3,100+ (All-Time High Retest)
A decisive bounce from ₹1,800 backed by strong Q4 earnings could trigger bullish momentum. However, a breakdown below ₹1,700 may signal caution.
📊Fundamental Analysis:
Despite recent underperformance, Deepak Nitrite's fundamentals are intact. The stock’s correction was directly linked to recent quarterly numbers, but technicals are suggesting a possible bottom formation.
📌Q3 FY24 Key Financial Highlights:
🔹 Financial stress reflected in Q3 earnings caused the correction in price.
🔹 RSI and price support suggest a possible reversal.
🔹 Market is keenly watching Q4 earnings for a recovery sign.
✅Conclusion: Deepak Nitrite is at a key technical and fundamental crossroads. With strong support at ₹1,700–₹1,800 and oversold indicators, a solid Q4 could reignite bullish momentum toward ₹3,000+. However, investors should stay cautious if support fails.
⚠️Disclaimer: This report is for educational and informational purposes only and does not constitute investment advice. Please consult your financial advisor before investing.
Deepak Nitrite Ltd has maintained long-term strength, trending upward for over a decade with a clear pattern of higher highs and higher lows. The stock reached an all-time high of ₹3,020 in October 2021 but later corrected sharply to the ₹1,700–₹1,800 zone, where it has found strong support multiple times.
In July 2024, the stock attempted a breakout and touched ₹3,169 but faced rejection due to an overbought RSI (above 75), triggering a sharp fall. In February 2025, RSI signaled oversold levels (below 25), aligning with strong price support at ₹1,800 — indicating a potential reversal.
💡Notably, the recent decline in stock price has been largely driven by weaker financial performance in recent quarters. However, the stock has now taken support at its historical levels, showing signs of stability and renewed interest.
With Q4 FY25 results scheduled for April 30, 2025, any positive surprise could act as a catalyst for a strong upward move.
📌Key Technical Levels:
Support Zones: ₹1,700–₹1,800
Resistance Targets: ₹2,500 (Initial), ₹2,800 (Secondary), ₹3,100+ (All-Time High Retest)
A decisive bounce from ₹1,800 backed by strong Q4 earnings could trigger bullish momentum. However, a breakdown below ₹1,700 may signal caution.
📊Fundamental Analysis:
Despite recent underperformance, Deepak Nitrite's fundamentals are intact. The stock’s correction was directly linked to recent quarterly numbers, but technicals are suggesting a possible bottom formation.
📌Q3 FY24 Key Financial Highlights:
- Total Income: ₹1,903 Cr (vs ₹2,032 Cr in Q2 FY24 and ₹2,009 Cr in Q3 FY23)
- Total Expenses: ₹1,735 Cr (vs ₹1,734 Cr in Q2 FY24 and ₹1,705 Cr in Q3 FY23)
- Total Operating Profits: ₹168 Cr (vs ₹298 Cr in Q2 FY24 and ₹304 Cr in Q3 FY23)
- Profit Before Tax: ₹135 Cr (vs ₹264 Cr in Q2 FY24 and ₹274 Cr in Q3 FY23)
- Profit After Tax: ₹98 Cr (vs ₹194 Cr in Q2 FY24 and ₹202 Cr in Q3 FY23)
- Diluted Normalized EPS: ₹7.19 (vs ₹14.24 in Q2 FY24 and ₹14.81 in Q3 FY23)
🔹 Financial stress reflected in Q3 earnings caused the correction in price.
🔹 RSI and price support suggest a possible reversal.
🔹 Market is keenly watching Q4 earnings for a recovery sign.
✅Conclusion: Deepak Nitrite is at a key technical and fundamental crossroads. With strong support at ₹1,700–₹1,800 and oversold indicators, a solid Q4 could reignite bullish momentum toward ₹3,000+. However, investors should stay cautious if support fails.
⚠️Disclaimer: This report is for educational and informational purposes only and does not constitute investment advice. Please consult your financial advisor before investing.
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.