Bucking the market trend, Mangalore Refinery and Petrochemicals shares soared 7 percent on March 10, on track for a five-day gaining streak. The stock has gained 14.5 percent in the past five trading sessions.
At 12:30pm, the stock traded at Rs 58.90 on the NSE, higher by 7.4 percent. Trading volumes of 12.7 million shares were 9.2x the 20-day average.
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The stock has been buoyed by the recent revision in windfall taxes. On March 6, the government marginally hiked the windfall tax on locally produced crude oil to Rs 4,400 per tonne from Rs 4,350. However, the export duty on diesel was slashed to Rs 0.5 per litre and export duty on Aviation Turbine Fuel (ATF) was scrapped completely.
Due to these taxes, MRPL had posted a loss of Rs 188 crore during the quarter ended December 2022 as against a net profit of Rs 586 crore in the corresponding period of the previous fiscal.
On March 9, MRPL also signed an agreement with Indian Institute of Chemical Technology (IICT) for collaborative research.
Under the agreement, MRPL and IICT will work towards a number of collaborative research and development in areas such as valorisation of low-value refinery streams and CO2 capture.
Technical view
MRPL is currently trading above the 50- and 100-DMA but is still below the 200-DMA of Rs 65.85.
“The stock has crossed above the strong resistance zone of 55-56.25 levels and presently it trades above two of the three important DMAs. The stock has the potential to test 59.50 and 64 levels,” Milan Vaishnav of Gemstone Equity Research said.
According to him, investors can enter while maintaining a strict stop loss of 55 on the stock.
Nilesh Jain of Centrum Broking agrees. “The immediate hurdle is placed at 59, and a breakout above it will open further upside towards 65-68. The outlook looks positive, but the risk-reward is not favorable for fresh longs,” he said.
Tips2trades’ AR Ramachandran added that RSI (relative strength index) is now in overbought zone and higher levels should be used to exit previous buy positions.
The stock had hit 52-week high of Rs 127.60 in June 2022.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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