Trending Stock: This Rubber Chemical manufacturer with outstanding results is gaining momentum

The shares of Nocil Limited are seen gaining momentum on bourses, in line with the other stocks from the chemical sector. 

There are multiple triggers for the stock at play. Be it capacity expansion which will help company grown its revenues by more than 20 per cent on an annualized basis or “China+ one” strategy expected to be adopted by global companies when it comes to global supply chain, NOCIL may benefit from the positive development. 

NOCIL boost of strong balance sheet and is almost debt free. The positive momentum in earnings is aided by better pricing environment for rubber chemicals. NOCIL has a dominant market share of over 40 per cent in Indian markets. NOCIL is the largest producer of rubber chemicals and finds itself in a sweet spot. 

The share price of NOCIL jumped higher by more than 2 per cent in Thursday trading session. The stock is trading close to its 52-week highs and may provide a 52-week breakout soon if one goes by the price momentum with rising volumes in the counter. On Thursday the shares of NOCIL closed above the short term simple moving average i.e 9D SMA, thus indicating near term bullishness. The stock is in an intermediate uptrend with higher highs and higher lows being made. 

In the recent quarter NOCIL declared an outstanding set of results. On YTD basis the stock is up by over 88 per cent while in one year the stock is up by over 113 per cent. 

NOCIL is engaged in manufacture of rubber chemicals domiciled in India. The Company has manufacturing facilities at Navi Mumbai (Maharashtra) and at Dahej (Gujarat).