Deepak Fertilisers and Petrochemicals Corporation Ltd. share price has seen a short-term pullback in recent sessions, likely driven by profit booking after a strong upward move. While the stock has corrected nearly 4% in the latest session, broader technical and momentum indicators still support a bullish outlook for the medium to long term.
Support Zones and Risk Management
The stock is currently trading around ₹1,612. Immediate support is visible at ₹1,522.75, a level where recent accumulation was observed. A deeper correction could find further support near ₹1,228.15, which aligns with a prior base and breakout zone.
Traders looking for a safer entry point should monitor the level of ₹1,752.40. A breakout above this level would suggest that the stock is regaining momentum and resuming its upward trajectory. Placing a stop-loss at ₹1,522.75 (previous swing low) would help protect capital in case the breakout fails or the trend reverses.
Relative Strength and Market Performance
The RS (Relative Strength) indicator currently stands at 0.27, indicating the stock is outperforming the Nifty 50. This positive RS reading supports the case for trend continuation once the short-term correction settles.
Momentum Score Overview (StockEdge)
1-Month: 57/100 – Neutral momentum in the short term
3-Months: 60/100 – Stable to mildly bullish
6-Months: 85/100 – Strong long-term momentum
The 6-month score clearly indicates that the stock remains in a strong uptrend on a broader time frame, even as near-term momentum flattens. This validates the current price movement as a potential consolidation phase rather than a reversal.
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Trading Strategy
Traders should look to enter only above ₹1,752.40, once the price confirms a breakout with sustained volume. Stop-loss should be strictly placed at ₹1,522.75 to protect against downside risk.
As with other trend-following strategies, it’s advisable not to set a fixed target. Instead, let the position run as long as the trend remains intact, indicated by:
- RS staying positive
- RSI remaining above 50 on the daily chart
If either of these conditions weakens, it would signal that the stock is losing momentum, and traders can begin considering exits.
Deepak Fertilisers remains a fundamentally strong and technically sound stock with high long-term momentum. The recent correction appears to be driven by short-term profit-taking and not by a change in trend. A breakout above ₹1,752.40 would confirm trend continuation and offer a low-risk, high-reward opportunity, provided risk is managed effectively using proper support-based stop-losses.
Viraj Jain is an active stock market trader and technical analyst with a sharp eye for identifying trend-driven opportunities. Passionate about market movements and price behavior, he specializes in analyzing crucial support and resistance levels in high-momentum stocks. Viraj is dedicated to keeping fellow investors informed with timely stock updates, chart-based insights, and actionable technical analysis that bridges the gap between market noise and informed trading decisions.