This summary text is fully AI-generated and may therefore contain errors or be incomplete.
PI Industries, an Indian chemical manufacturer specializing in agrochemical products, may experience a significant rally in its share price. According to financial firm Motilal Oswal, the stock price could increase by up to 34%. The company had a successful Q2 in 2023, with a 46.2% year-on-year increase in net profit, leading investors to anticipate similar performance in the upcoming quarterly results. Oswal also highlighted PI Industries’ plans to expand into the pharmaceutical sector and strengthen its position in the domestic agrochemical market as factors that could drive the stock price higher. Additionally, the company’s focus on custom synthesis manufacturing has given it an edge over competitors.However, despite the positive outlook, technical analysis suggests a bearish trend for PI Industries’ stock price. The price has formed a bearish pattern known as a “Rising Wedge,” characterized by converging trendlines and declining trading volumes. If the pattern is confirmed, the stock price could potentially fall by more than 31% to reach a downside target of around $28.7.Despite this bearish signal, PI Industries’ share price has been on a bull run, rising by nearly 7% since October 26. However, the price has struggled to break above the 200-day and 50-day exponential moving average (EMA) resistance levels. Bulls will aim to surpass these trendlines and target the resistance near $43.25. Flipping the immediate resistance could further drive the price towards $45 before a correction. On the other hand, if the 200-day EMA rejects the rally, the share price may decline to the support level near $40.5. A breakdown below this support level could lead to a test of the support near $38.45.The relative strength index (RSI) for PI Industries’ stock remains neutral, with a score of 54.17 on the daily charts.