Technical strength!NSE:NIFTY_TOTAL_MKT NSE:RHIM
are we looking for a Bull cycle ahead,
A new wave unfolding to upside!
RHIM trade ideas
RHI MAGNESIA-BUYhead and shoulder breakout and wave count suggest 2 nd wave is over and 3rd wave target of 649 min with low equity in hands of public this multinational script to soars to newer highs quite possible a bonus might be on the cards and some news/ rumor of merger of one big company in RHI .
RHIM - correction happening and level to watchSo many stocks gave breakdowns. RHIM, MNC company also gave a breakdown from h&s pattern. RHIM is the world leader in refractories and their plan is to make India as their manufacturing and export hub, Keep this in your watch list, 350-380 would be an excellent purchase price. Stock price has potential to double from that level in 2-3 years.
RHIM--SELL ON RISEafter completing 5th wave we have completed A wave at 515 and presently we are in B wave maximum trg of 581-82. sell on rise as we have C wave comming which might target 400 odd rupees
RHIM--SELL ON RALLYlikely target of 5th wave 633, 45.54 and we are near to it. RSI OF 93 in weekly chart shows script to be highly overbought and shareholder number falling drastically due to which liquidity squeeze makes the price of share to rise, value of share is stretched selling is advised on rally tomorrow it might make a a hanging man .
RHIM -BUY AND SELLit is in a strong uptrend and we have a third wave target of 627or 633 or 637 let us see which target is hit tomorrow .sell on rally as RSI in weekly chart is above 80 and stock looks ripe for decent correction after rally ATR 56 means high volitility ultimate oscillator also overbought. Public holding in stock is only 36600 person holding 30 % as of DEC21.
(ONSE:RHIM) RHI Magnestia India Capital Cycle Play?RHIMagnestia India ltd earlier known as Orient Refractories Limited (ORL) is in the business of manufacturing and marketing special refractory products, systems
and services to the steel industry in India and Globally. It is a market leader for special refractories in India and has many global customers for its international quality products.
KEY POINTS
Revenue Breakup
Presently, the company earns 74% of its revenues from manufacturing of refractories and 22% from trading of refractory items.
Dependent Industries
Demand for refractory is primarily dependent on steel industry, which accounts for 75% of total sales. Refractory products are also used glass, cement, non-ferrous, petrochemicals, etc.
Manufacturing Facilities
The company has 2 manufacturing facilities located in Bhiwadi, Rajasthan and Tangi, Odisha for its manufacutring operations.
Capacity Expansion & Investment
In FY20, The company purchased certain assets of Manishri Refractories & Ceramics Pvt Ltd's plant situated at Cuttack, Odisha for ~44 crores. The plant has capacity of 10,000 tonnes of MGU bricks which will be increased to 18,000 tonnes post capex.
It also acquired 100% stake in Intermetal Engineers India Pvt Ltd for 10 crores for manufacturing of steel plant equipments which are exported to its customers in Gulf and African Region and caters to 400 plant customers in India.
Merger Scheme
The company proposed a merger scheme to merge RHIIndia and RHIClasil (promoter group entities) with the company.
The merger would issue ~4 crore equity shares to the shareholders of RHIIndia and RHIClasil which would have increased the equity capital of the company to 16 crores.
The scheme was rejected by the NCLT in March 2020. However, the NCLAT directed NCLT to approve the scheme without any delays January, 2021.
Acquisition by RHIMagnesita
RHIMagnesita acquired 43.6% stake in the company from the core shareholders in March, 2013.
It further acquired 26% stake through an open offer in April 2013.
RHIMagnesita is a global leader in refractories with largest number of manufacturing locations around the world.
Disc: Not invested as yet , might add a tracking position next week.
RHI Magneista BreakoutThe stock has broken out and retested, therefore may undergo a reversal rally. Trade is supported by brokerage calls and Supports Nearby.
Risk Reward Ratio - 2:1
SL is placed below support zone & the lower trendline. The target is placed near resistance.
RHI MAGNESIA--SELLtrend line resistance at 435-40 level distribution at higher level sets in sell at present level to enter at 410-15 level
RHIM NSE BULLISHVIEW BOVE 394 CMP 428RHIM NSE is bullish if 394 holds CMP 428. New LifeTime High. Fresh Breakout. Positive Trend.
***** Educational purpose only. Not Buy/Sell Recommendtion.
NSE:RHIM
RHIM-Not late to catchBeautiful breakout with strong tailwinds in the sector will trigger this stock,CMP-400A
Potential multibagger
