What’s the buzz in Gujarat Fluorochemicals?

On a YTD basis, the stock has delivered a massive return of 311.82%.

Gujarat Fluorochemicals is engaged in the business of chemical and allied products. The company primarily offers plastics and speciality chemicals products and services. It is a midcap company with a market cap of Rs 22,628 crore. The company had been severely affected by the Covid pandemic and lockdown as their revenues and profits decreased last financial year, but strong management and business practices boosted investor confidence, and it is evident from its stock movement.

On a YTD basis, the stock has delivered a massive 311.82% return. The 3-month performance stands at 38.85% and the stock is trading strong in the medium to long term from the above-mentioned statistics.

Majority of the stake is being held by the promoters (67.65%) while the retail portion holds about 25%. The DII and FII relatively hold less stake of 4% and 3% respectively. On Thursday, the stock is up by almost 15% and with this, it has registered its biggest intraday gain in almost eight months since April 9, 2021.

It took out its prior all-time high of Rs 2200 and currently it trades at Rs 2350. This move is supported by huge volume which indicates active participation from the institutions and HNIs. The stock never witnessed any severe corrections since the pandemic which tells the strength of the stock. It usually takes the support at 50-DMA before resuming its uptrend.

Currently, the stock trades above all its key moving averages. Also, the key indicator like RSI has spiked to 68 showing super bullishness. The positive DMI (+) has crossed over its negative DMI (-) yesterday and is moving southwards. With the technical parameters indicating super bullishness, the stock certainly looks to scale further heights as it moves into its uncharted territory.

Considering the performance, it has shown, we can expect the stock to continue its momentum on the higher side. Traders can expect some good returns for the short to medium term as the technical analysis validate our point.