Thirumalai Chemicals corrects on profit selling

Thirumalai Chemicals fell 3.73% to Rs 73.4 amid profit taking after a recent steep surge.

The stock surged 33.53% in the past three sessions to Rs 76.25 yesterday from its recent closing low of Rs 57.10 on 17 August 2020.

During the same period, the S&P BSE Sensex and the S&P BSE SmallCap index added 0.45% and 3.22% respectively.

On the technical front, the stock's RSI (relative strength index) stood at 76.908. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock, however, continues to trade above its 50-day, 100-day and 200-day simple moving averages (SMA) placed at 56.07, 49.24 and 56.39, respectively.

Thirumalai Chemicals manufactures and sells organic chemicals in India. It serves the plastics, paints, food, cosmetic, and pharmaceutical industries. The company also exports its chemical products to approximately 34 countries.

On a consolidated basis, the company reported a net loss of Rs 20.10 crore in Q1 FY21 as against a net profit of Rs 12.09 crore in Q1 FY20. Net sales during the quarter tumbled 60.9% YoY to Rs 113.49 crore.

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