Multibagger Smallcap chemicals stock rallies nearly 10 per cent in 2 days; do you own it?

On Wednesday, the stock rallied over 5 per cent, backed by rising volume and buying activity.

Shares of Mumbai-based Yasho Industries have been a proven multibagger, having generated over 1,000 per cent returns to its shareholders in the past 3 years. On Wednesday, the stock rallied over 5 per cent, backed by rising volume and buying activity. The speciality chemicals company with the market capitalisation of about Rs 1,900 crore is now in a structurally uptrend phase as per the technical chart.   

The historical price action says a lot about the buying activity in the stock. Technically, the stock has registered a strong price volume breakout from its consolidation pattern. It currently trades above all its key moving averages and has formed consecutive bullish candles. The 14-period RSI (60.46) lies in the bullish territory and indicates strong strength in the stock. The MACD histogram is rising and indicates upside potential. The other momentum oscillators and technical parameters also have a positive bias over this stock. In short, the technical setup is bullish and attractive to market participants. For medium term, the strong resistance lies at Rs 1900 levels while Rs 1500 level shall act as immediate support level.   

The shares of YASHO have hit the day’s high of Rs 1745 on NSE. Long term investors should track this stock in upcoming trading sessions.   

Yasho Industries Limited manufactures performance chemicals for industries as diverse as Rubber & Latex, Food & Flavours, Perfumery, Lubricants and other Specialty applications since 1993. It aims to develop sustainable manufacturing processes to deliver quality products for its customers.