Wyckoff distribution of Deepak Nitrate

This scrip is highly overvalued, and fair value is around 888 (personal view after deliberating fundamentals). Currently, Wyckoff distribution is playing out, and further downside is expected.

Fundamentally, scrip is strong, but it is highly overvalued due to excess liquidity. With each interest rate hikes, the fair value, which is 55% of the highs of pre-covid level may become available with squeez in liquidity. At 1850 it is appx 225% of the pre-covid highs, insanely high!

Technically, it is under-pressure, and further pain can be expected in distributive manner, until a fair value is achieved.

For further information, look at the chart. It is self-explanatory!

Disclaimer: For educational purpose. Consult your financial advisor before investing.