Rain Industries shares: Why this chemical stock is falling — explained
3 min read . Updated: 10 Sep 2022, 12:48 PM IST
Premium- Rain Industries shares have given flag pattern breakdown on closing basis, say stock market experts
Rain Industries shares on Friday witnessed heavy sell-off losing over 7.80 per cent on NSE in single session, worst intraday loss since 20th June 2022. Rain Industries share price had a gap down opening on Friday and the chemical stock went on to hit its intraday low of ₹184.15 apiece, losing over 8 per cent in single session. The chemical stock failed to recover from its intraday loss as it settled close to its intraday low and finished at ₹185.45 apiece levels.
According to stock market experts, Rain Industries shares have fallen because of the temporary closure of an operating unit in Europe. They said that the stock has given 'Flag Pattern Breakdown' yesterday and it may go up to ₹140 apiece levels in near term. They advised shareholders of the stock to exit on any bounce back and re-enter at around ₹140 apiece levels.
Rain Industries share crash: Experts list out this reason
Speaking on the reason for sharp fall in Rain Industries shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Rain Industries shares witnessed sharp downside trend due to the temporary closure of an operating unit in Europe and the company has announced to develop an additional energy-related contingency plans for its other European production units in anticipation of potential natural gas shortages and price spikes during the upcoming winter months resulting from the unprecedented and unpredictable geopolitical environment. This is going to hit the chemical company's revenue in upcoming quarter and market is responding to this by squaring off their positions in the scrip."
Rain Industries share price outlook
Expecting further downside trend in the chemical stock, Anuj Gupta, Vice President — Research at IIFL Securities said, "Rain Industries shares have given flag pattern breakdown on Friday. The immediate support for the chemical stock is placed at ₹178 and those who have this stock in their portfolio are advised to maintain strict stop loss at ₹178 and exit if there is any bounce back in the stock after such a sharp sell-off witness on Friday. Once this ₹178 support is broken, the scrip may go down to ₹140 levels. On upside, immediate resistance for the stock is placed at ₹210 apiece levels."
Rain Industries latest news
Rain Carbon Inc., a leading global producer of carbon-based products and advanced materials, on Friday announced that it had temporarily closed an operating unit in Europe and is developing additional energy-related contingency plans for its other European production units in anticipation of potential natural gas shortages and price spikes during the upcoming winter months resulting from the unprecedented and unpredictable geopolitical environment.
“Given the severe natural gas situation in Europe — the expected decrease in consumer demand during the cold winter months for certain products and the risk of continued increases in gas prices – we have conducted a thorough analysis of the energy-intensity of each production unit at our European plants and are closely evaluating whether it makes economic sense to temporarily reduce or shut down additional production lines in the event the situation worsens," said Rain Carbon President Gerry Sweeney.
Rain Carbon’s European footprint is essential to the company’s global operations, and these decisions are being made be taken to ensure the long-term viability of operations. Additionally, the company is closely monitoring its suppliers and customers, as some of them are taking similar actions that could indirectly or directly impact operations as well. Any measures taken are expected to be temporary, and Rain Carbon is fully committed to returning to full operations when the situation improves.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
