Stock of the Day – Gujarat Fluorochemicals

While the Indices are hitting new all time highs, a lot many stocks are still waking up just now. Gujarat Fluoro is one of those companies that haven’t delivered any strong returns over the years. As on date, the stock trades at 320, a price which the stock first saw in early 2006 (that is 8 years of non performance if one ignores the upside we saw in 2011 and the downside we saw in 2009.

The stock after making the high in 2011 lost nearly 65% before it started bouncing back once again. With today’s move, it has crossed one hurdle in terms of a major resistance though a lot needs to be done before the stock can claim to be out of the woods. Of course, its not that the stock alone has been a under-performer. If we look at its peers, there is not much to choose from and this suggests that unless there is a turnaround in the industry itself, the risk of the stock being beaten back remains high.

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About Prashanth

Have been a full time participant in the stock markets since 1996. Run a Yahoo Group where focus is exclusively on discussions of the Indian Markets using Technical Analysis as the tool (groups.yahoo.com/group/technical-investor)
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