Rain industry has broken a major support on monthly charts and if there is a steep fall in NIFTY, then rain may go down to 110-120 price range…further the stock may continue to be in consolidation phase / move sideways for another 6-12 months…so investors will have to wait for perhaps one more year to make profits from this stock.
One the positive side, Rain industries long term chart patter is developing in a very potentially bullish fashion. Once the stock price comes out of this consolidation, then the returns from Rain industries can be quite big and in a short period of time.
Its a high debt commodity player- so once they roll over the debt it becomes a pure momentum stock. There is not much to analyse in any commodity stock. Just watch it carefully and jump in during the initial phase of the rally.
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