RCF break out, pull back and bounce

2022년 3월 30일

1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or close below daily supertrend (for short term traders) or close below weekly supertrend (for long term investors)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Largest weekly price spread
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop

after consolidation since may 2021, on 29th March RCF gave a high volume breakout. Today at pulled back to the support of Rs.88.50 and is currently trying to cross the previous day high of Rs.93.70. If he successfully bounces back above Rs.93.70 it will be a good buy with a stop just below Rs.87.50.

Why are fertilizer stocks in demand?

Shares of fertilizers companies have been in demand riding the commodity boom, more so after the start of the Russia-Ukraine conflict. According to reports, prices of three main types of nutrients have been rising for several months on the back of supply shortages and high energy prices. Recently, the government had permitted fertilizer companies to raise output of urea manufacturing units beyond installed capacity, in order to meet shortfall.

RCF fundamentals:

Company has reduced debt.
Stock is providing a good dividend yield of 3.35%.
Company has been maintaining a healthy dividend payout of 50.47%.
Debtor days have improved from 140.73 to 63.89 days.
Debt to equity at 0.50 (less than 1 is good) and Interest Coverage at 7.46 (greater than 3 is good).

2022년 4월 6일

노트

#ETNOWExclusive | RCF identified as one of the non-strategic PSUs that govt will either sell stake in or privatise, sources say.