Bearish trend breaks on UPL

The supply chain across the globe has hit hard as the spread of Coronavirus increases which has resulted in the lockdown of companies and the supply has been halted across the countries on account of the lockdown. UPL is one of the major player in the CPC industry which has seen many disruptions in the market and also has beaten the market. Fertilizers being the fourth largest commodity to be imported from China to India which has been disrupted by the virus outbreak. The domestic players are viewing the current situation as an opportunity to seize the market share which are vacated by the Chinese chemical companies. UPL can be viewed as an alternative for the supply of CPC products which would also boost the revenue of the company.

The company’s Q3 results have been impressing as the consolidated net profit of the company rose by 77% to Rs. 838 crore in Q3 December 2019 from Rs.472 crore in Q3 December 2018 which shows the strong financial position of the company. The company is also taking steps to reduce its debt capitalization which has also been halted due to the lockdown of the industries. The following chart shows the formation of red cloud which denotes the bearish trend for the stock as the pandemic fears shatter the market sentiments. The bearish trend has been caused due to the lockdown of companies and supplies in the country which has been ended by the bullish candlestick that has been formed during yesterday’s trading session. The Chikou span line also shows an upward trend with the base line above the conversion line also indicates a buy signal for the stock.

The supply chain across the globe has hit hard as the spread of Coronavirus increases which has resulted in the lockdown of companies and the supply has been halted across the countries on account of the lockdown. UPL is one of the major player in the CPC industry which has seen many disruptions in the market and also has beaten the market. Fertilizers being the fourth largest commodity to be imported from China to India which has been disrupted by the virus outbreak. The domestic players are viewing the current situation as an opportunity to seize the market share which are vacated by the Chinese chemical companies. UPL can be viewed as an alternative for the supply of CPC products which would also boost the revenue of the company.

The company’s Q3 results have been impressing as the consolidated net profit of the company rose by 77% to Rs. 838 crore in Q3 December 2019 from Rs.472 crore in Q3 December 2018 which shows the strong financial position of the company. The company is also taking steps to reduce its debt capitalization which has also been halted due to the lockdown of the industries. The following chart shows the formation of red cloud which denotes the bearish trend for the stock as the pandemic fears shatter the market sentiments. The bearish trend has been caused due to the lockdown of companies and supplies in the country which has been ended by the bullish candlestick that has been formed during yesterday’s trading session. The Chikou span line also shows an upward trend with the base line above the conversion line also indicates a buy signal for the stock.