India Glycols is a leading company that manufactures green technology based bulk, specialty and performance chemicals and natural gums, spirits, industrial gases, sugar and nutraceuticals.
The company was established as a single mono-ethylene glycol plant in 1983. Since then, IGL has brought together cutting-edge technology, innovation and an unflagging commitment to quality, to manufacture a wide range of products that have found global demand.
“India Glycols holds the distinction of being the only green petrochemical company of its kind. It is one of the leading manufacturers of glycols, ethoxylates and PEGs, performance chemicals, glycol ethers and acetates, natural gums and potable alcohol.”
as per the company profile and info we can see that this is the company which provide ethanol, and ethanol is mandatory by Indian government in all petroleum products which is 5% , for detail news see on below link.
as per the records BRAZIL and USA are main users and producers of ethanol, in barazil all fuels be blended with a minimum of 22percent ethanol and in USA its upto 10% but Flexible-fuel cars, trucks, and minivans use gasoline/ethanol blends ranging from pure gasoline up to 85% ethanol in USA.
so with the increasing demand in crude oil, rising price of fuel, we can assume that in coming days we can see massive demand for ethanol blended fuel in India, and even car manufacturer can even start to manufacture such cars which are mostly conferrable with this.
so if Indian government look to change then ethanol policy in near future then this stock is going to get major benefit of it.
TECHNICAL CHART STUDY
with above explanation we can understand that, company is having good business running now, which is having a good development scope in near future but we will still have a look into the technical study of stock.
as per the chart development we can see that stock has given a one-way fall in last one year and overall its fallen from its life time high level of rs. 510. so 1st thing to keep in mind is “even if company is fundamentally sound but till we not get any reversal or any buy signal on chart, we wont suggest to invest in such company”
as per the technical chart stock is in falling channel from past 1 year, and recently done some consolidation at bottom levels.
stock has given a ” POSITIVE CONVERGENCE” signal on chart, and recently given a “NEGATIVE DIVERGENCE” also at upper level.
recently it has made “SYMMETRIC TRIANGLE” pattern on chart, and RSI has made ascending triangle on chart.
we can still see that RSI yet not moved in to overbought zone.
so as per the technical chart we can say that if price able to give close above 101 level for 2 trading session then we can expect a good movement in a stock and further if price able to give close above 110 then one can think to hold this stock for even long term or for multiple targets also.
so overall buying above 101 level with 80 as sl if gives close above 110 then one can hold for 150-200-250 or more also, till we get any next technical confirmation on chart.