Advanced Enzyme Technologies Stock Price: Chart Check: Buy Against? This agricultural products company is down 30% from October 2021 highs

which is down more than 30% from its 52-week high, is showing signs of a rebound.

The stock with a market cap of over Rs 3,000 crore is firmly bear-ridden. It managed to rally nearly 10% on September 20 to close at Rs 293. It was up more than 6% in one week.

Advanced Enzymes is a research-driven company, a world leader in the manufacture of enzymes and probiotics. It has state-of-the-art manufacturing facilities and research and development centers in India, USA and Europe.

The stock hit a 52-week high at Rs 421 on October 11, 2021, but failed to maintain momentum. The stock closed at Rs 293, translating to a decline of more than 30%.

The stock took support above Rs 250 in Feb 2022 and then rebounded, but it found resistance closer to the Rs 300-320 levels. The stock consolidated in a range and tested the Rs 250 levels again in July before bouncing back.

The stock managed to break above the Rs 300 level in intraday trading on September 20, 2022 and also above a falling trend line since February 2022.

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The relative strength index (RSI) is at 41.1. An RSI below 30 is considered oversold and above 70 is considered overbought. MACD is below its center line, which is a bearish indicator.

“The stock corrected from the Rs 503 level to consolidate at around Rs 250 and with the positive candle pattern formed, the stock looks potentially poised for an upside bounce,” Vaishali Parekh, Vice Chairman – Technical Research, Prabhudas Lilladher Pvt. Ltd, said.

“The RSI indicator is positive; we recommend a buy on this stock for an upside target of Rs 380 in the next 3-4 weeks, and keeping a stop loss of Rs 280,” she added.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Karen J. Nelson