Business News/ Markets / Stock Markets/  Deepak Nitrite shares jump nearly 10% on investment plans of 5,000 crores in Gujarat; check details

Deepak Nitrite share price jumped nearly 10% on Wednesday after the company's subsidiary Deepak Chem Tech signed a memorandum of understanding with the Gujarat government with the intention to invest roughly 5,000 crores over the next four years in projects to establish the production of speciality chemicals, phenol/acetone, and eisphenol at Dahej/Nandesari.

The proposed investment is anticipated to create about 1,500 direct and indirect job possibilities, the company stated in an exchange filing.

The company also claimed that the projected investment will lower India's import costs. Products from these projects have a variety of final uses, such asspecialitychemicals that meet the needs of the pharmaceutical and agrochemical sectors.

Acetone and phenol are utilised in a variety of end-user industries, including taminates, plywood, pharmaceuticals, paint, and adhesives. The most significant feedstock for Epoxy and Adhesives is Bisphenot. Polycarbonate is a material with several uses in the automotive, electronics, consumer goods, defence, and medical industries, among others.

On the technical front, the stock opened at 1,950 apiece on BSE, and touched an intraday high level of 2,144 and low of 1,935.

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, this stock has been in a consolidation phase for the last few months, however today we are seeing traction with prices up more than 9% .

“The prices have come out of a recent consolidation phase and expect this move to continue in the near term with 2,450 as immediate resistance and any dips towards 2050 to be considered as buying opportunity," said Bhosale.

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Updated: 24 May 2023, 12:50 PM IST
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