PCBL Chemical share price surged more than 17% in intraday trade on the BSE on Wednesday, March 25, rising for the second consecutive session. PCBL Chemical shares opened at ₹235.15 against their previous close of ₹233.30 and surged 17.4% to an intraday high of ₹274. Around 1 pm, the mid-cap stock was 15% up at ₹268.
PCBL Chemical share price is rising along with a sharp rise in volume. More than 4 crore shares of the company changed hands in intraday deals.
Meanwhile, on the monthly scale, the stock is down 13% in March after clocking a 16% gain in February.
Year-to-date, the stock is down 10% compared to an 11% fall in the equity benchmark Sensex.
Can the stock rise more? Should you buy?
Some technical experts believe one can consider buying the stock on dips. However, ₹330 remains a crucial level for the stock, which will indicate a bullish trend.
Aditya Thukral, a SEBI-registered research analyst and the founder of AT Research and Risk Managers, pointed out that a remarkable rally in the form of a motive/impulsive structure was witnessed in the stock from the March 2020 bottom, which has bullish long-term implications.
“Now that the prices have retraced around 61.8% of the previous impulsive rally and we are witnessing buying with huge volumes, bulls will have the upper hand on the stock from a long-term perspective,” said Thukral.
According to Thukral, from the short-term perspective, previous supports worked as resistances, but the stock prices have now crossed the ₹254.5 level, which should have acted as resistance if the stock had to fall further.
Thukral further highlighted that the stock is trading below the long-term moving averages of 100-day and 200-day, so some mean reversion will be witnessed in the short term towards these averages, which are currently around ₹300 and ₹328, respectively.
“Yesterday’s bottom of ₹226.50 remains borderline for the bulls; any dip below that level would mean that the correction in the stock prices would further extend. We expect the short-term continuation of the rally in the stock prices toward the ₹300 and ₹320 levels by staying above ₹226.50. Any move above ₹331 will mark a long-term bullish reversal in the stock,” said Thukral.
Hitesh Tailor, a technical research analyst at Choice Broking, underscored that the PCBL share price has engulfed the previous eight-day range, indicating strong short-term price expansion.
However, broader timeframes such as weekly and monthly charts still reflect a retracement phase, suggesting the move may need further confirmation for trend continuation.
“On the daily chart, there are limited, clear entry signals for the short term. For confirmation, a decisive breakout above ₹330, supported by EMA crossover and momentum strength, is essential. From a positional perspective, strong demand is seen in the ₹205– ₹240 zone, making accumulation on dips a more favourable strategy,” said Tailor.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
