Small Midcap Mantra: Analyst’s thumbs up to this stock which touched 52 week high this month, what do you have?

Even after outperforming the benchmark index and touching a 52-week high in the same month, the analyst has Excel Industries I still expect more momentum. Experts say that a bullish pattern is still forming on the chart of Excel Industries which is giving new buying opportunity in this stock.

Chemical maker Excel Industries touched its 52-week high on 13 July. The stock has formed a bullish pennant pattern on its chart which according to analysts is indicating another 13 per cent upside in the stock.

A pennant is a continuation pattern formed on a chart. It is formed when a large momentum is seen in a short period of time. After that there is consolidation and after that the stock sees a breakout in the same direction.

The market cap of Excel Industries is Rs 1500 crores. So far in 2021, this stock has seen a gain of more than 45 percent. While the Nifty has seen a rise of only 14 per cent in the same period. The stock has gained more than 50% in the last 3 months.

Experts say that the recent breakout can take this stock towards Rs 1,410. Which is more than 13 per cent from its level of Rs 1,240 on July 14. Excel Industries is one of the earliest chemical companies in India.

Dharmesh Shah of ICICI direct Says that chemical stocks have seen a rise for some time now. However, during this time this stock has been seen to be lagging. However, the stock has been gaining momentum over the past few weeks and a bullish pennant pattern is forming on its chart above the 10-Week EMA. This is indicating that this stock may touch the level of Rs 1,410. Dharmesh Shah says that there is strong support for this stock around 1085.

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