NOCIL gives trendline breakout

From the low of Rs 45, which was registered on March 24, 2020, the stock of NOCIL Limited has maintained its rhythm of higher tops and higher bottoms. The stock has relatively outperformed the frontline indices in the current leg of the upward rally. Its relative strength comparison with Nifty 500 and Nifty 50 has reached to new heights.

On Monday, the stock gave a downward sloping trendline breakout on the daily timeframe. This breakout was supported by a robust volume of more than double of 50-days’ average volume, indicating a strong buying interest by the market participants. Additionally, the stock had formed a bullish opening Marubozu candle on the breakout day, which indicates extreme bullishness.

Talking about the indicators, the 14-period daily RSI is currently quoting at 64.34 and it is in a rising trajectory. The MACD line just crossed the signal line, and the histogram became green. Moreover, the other volume-based indicators such as OBV and Money Flow Index are also very strong.

Going ahead, we expect the bias to remain positive as long as the stock sustains above its 20-day EMA level, which is currently placed at Rs 130.30. On the higher side, the zone of Rs 149-Rs 150.50 would be seen as the next resistance zone for the stock.

On Monday, the stock of NOCIL surged by 11.87 per cent and closed at Rs 144.15 per share. The stock opened at Rs 129 per share and hit an intraday high of Rs 147.50 and a low of Rs 129 per share on NSE.