Drop in crude prices has a positive impact on paint stocks
Published On: Thursday, July 22, 2021 | By: Team KnowMyStock
Brent Crude prices have crashed 15 percent from the peak of $77.80 a barrel level and are currently trading around $72 a barrel after recovering from the low of $67.42 hit earlier in the week. This drop in crude price has a positive impact on paint stocks. Hence, the stocks of Asian Paints, Berger Paints, and Pidilite Industries have scaled news highs in trade today(22nd July 2021). Even on a year-to-date (YTD) basis, their performance has been noteworthy with Pidilite Industries rallying 32 percent and Asian and Berger Paints up 15 percent each, data available with ACE Equity shows. The tech charts signals for some of these shares are: ASIAN PAINTS LTD Likely target: Rs 3,500 Upside potential: 11 As long as the support of the 50-days moving average (DMA) is held firmly, placed at Rs 2,958-mark, the upside sentiment is expected to surge.
PIDILITE INDUSTRIES LTD
Likely target: Rs 2,600
Upside potential: 11%
Currently, this is witnessing buying momentum in the overbought category of the Relative Strength Index (RSI), signalling bullishness.
BERGER PAINTS INDIA
Likely target: Rs 900 to Rs 930
Upside potential: 5% to 8%
The overall trend is bullish with price action showing a stable upside.
Indigo Paints Ltd
Likely target: Rs 2,750 to 2,800
Upside potential: 5% to 7%
The Moving Average Convergence Divergence (MACD) is managing an upward direction by staying above the zero line. The overall trend suggests a move towards Rs 2,750 and 2,800 levels.
Akzo Nobel India Ltd
Likely target: Rs 2,500
Upside potential: 5%
As long as the stock stays above its 200-DMA, placed at Rs 2,222 levels, the upside bias could breakout above the resistance at Rs 2,390 levels. When that happens, a rally towards Rs 2,500 level can't be ruled out.
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