Vinati Organics Limited is engaged in the manufacture of organic and inorganic chemical compounds, specialty organic intermediates and monomers.
1. Its long term trend is up as price is making a higher top higher bottom formation and mid and long term EMA’s are moving upwards.
“Cup and Handle”
The preceding trend is up. Formation of a Cup and Handle signifies that consolidation and accumulation is going on after a strong uptrend. When the preceding trend is up , theprobability of a breakout is high and an upmove is most likely to be witnessed.
The breakout will occur when price sustains above 670 with relatively high volumes.
Once the breakout takes place , the two targets that would be open would be 828 (23%) and 986 (47%)
3. There was good accumulation with volumes at 100 and 200 Day EMA as pointed out in the chart. This is a sign of entry by institutional investors.
The script has excellent fundamentals and one can take part entry on the day a breakout is achieved and other part when price pulls back towards 670. This will ensure a good average buying price.
P.S : This analysis is invalid below 500.