Top buzzing stock: Coromandel International Ltd

The stock of COROMANDEL is bullish and has surged over 3% on Thursday.

Coromandel International is a midcap company, engaged in the manufacture and trading of farm inputs consisting of fertilizers, crop protection, speciality nutrients and organic compost. With a market capitalization of about Rs 25800 crore, it is one of the strong growing companies in its sector.

The stock of COROMANDEL is bullish and has surged over 3% on Thursday. With this, it has given a breakout from its downward sloping trendline with heavier volume. After a gap-up opening, the stock continued to trade higher and hit a high of Rs 885. On the technical chart, the stock has formed a strong bullish candle and is trading at a day’s high. Since its prior swing low of Rs 810, the stock has gained over 9% in just three trading sessions, thus displaying strong bullish momentum. Along with this, the volume recorded during this period were above average and today’s volume is found to be greater than the 10-day, 30-day and 50-day average volume. This pretty much justifies the bullish price structure of the stock.

The 14-period daily RSI (65.97) has crossed above its prior swing high. Thus, price and RSI, both moving above their respective swing highs is a sign of bullishness. The +DMI is well above its -DMI and ADX pointing upward is a bullish sign. Interestingly, the On Balance Volume (OBV) shows similar characteristics as that of RSI and indicates strong strength from the volume’s perspective. Moreover, Elder Impulse system and KST maintain a buy signal.

In the past, the stock has gained about 15% on a YTD basis, Moreover, in one-month performance stands over 9%. During this period, it has outperformed the broader market and most of its peers. Considering the above points, the stock is expected to trade higher in coming days. It has the potential to test the levels of Rs 900, followed by Rs 925 in times to come. Also, it presents a good opportunity for swing trading.

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