IMFA - Indian metal ferro alloys is a steel ancillary play, with leadership in ferrochrome production. With China opening up post Covid lockdown, the demand and prices for ferrochrome has seen strong rebound. This is a purely cyclical play and one has to play it accordingly. These kind of stocks have a definite buy and sell price which have to be adhered to.
On the charts, stock formed a double bottom at around 230 (shown in dotted green lines) and intervening peak was at 301. Stock price crossed this peak in Jan 2023, and posted a swing high of 323 and then underwent a daily correction and went down to retest breakout zones and posted swing low of 275 and rebounded and today crossed previous swing high of 323 to post a fresh swing high of 330. CMP at 321.
Target if double bottom plays out successfully would be 370 (shown in dotted blue line) . Major resistance above it is at levels of 500 (shown in solid red line) where there are previous major peaks.
disc: invested as a techno funda bet. (not a recommendation, please do your own diligence if you buy it)
