Top buzzing stock: Fertilisers & Chemicals Travancore Ltd

The stock of FACT has soared over 9% on Friday’s trading session.

Fertilisers & Chemicals Travancore Ltd (FACT) manufactures fertilizers, petrochemicals, and chemicals. The company also has a presence in the business activities of fertilisers and petrochemicals. With a market capitalization of Rs 8100 crore, it is one of the strongest midcap company in its sector having strong growth potential.

The stock of FACT has soared over 9% on Friday’s trading session. It took support at its 20-DMA at Rs 116 and has jumped strongly from there. With this, the stock has crossed above its 50-DMA, 100-DMA, and 200-DMA. The stock has hit the day’s high of Rs 129.55 before receding a little. Moreover, it has taken out its prior swing high of Rs 123.50. Such a strong price structure is also accompanied by huge volume, which happens to be about twelve times the previous day’s volume, demonstrating strong trading activity. Since its recent low of Rs 106.20, the stock has soared over 20% in a few trading sessions.

The stock has risen for the fourth consecutive day. With this, the 14-period daily RSI is rising and placed just below 60, indicating improved strength in the stock. The MACD histogram is rising above the prior high and indicates a strong uptrend. Meanwhile, the On Balance Volume (OBV) has hit a higher high and indicates strong strength from a volume point of view. Along with this, the Elder Impulse System has signalled a fresh buy in the stock.

Past week, the stock surged over by 13% and has gained strong momentum lately. It has also outperformed most of its peers during the period.

Considering the bullish price structure along with heavier volume, the stock is an ideal candidate for swing trading. It is expected to test the levels of Rs 135, followed by Rs 140, which happens to be its strong horizontal resistance level. Swing traders / Positional traders can expect decent gains from this stock in the short to medium term.