Swing Trade Journey – Trade 15: Pondy Oxides and Chemicals Ltd (Tade 15 Log
Long in #POCL at ₹1319
Reasoning:
Price is trending above short-term moving averages with rising volume and strong relative strength within the sector. Setup continues to show a favourable risk–reward profile.
Tracking this as part of my swing trade journey — recording setups, risks & outcomes.
#TradingJourney #StockMarketIndia #SwingTrading #POCL #Metals
Pondy Oxides & Chemicals Ltd.
No trades
Market insights
POCL : Took a swing position with 1% riskThere is a confirmed breakout supported by volume, along with a well-defined basing pattern. Additionally, both EPS and sales have been steadily improving over the past three quarters.
Therefore, I’ve decided to enter a trade on the price retracement, while planning to manage the position based on the stock’s price action as well as the broader market trend.
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If my perspective changes or if I gather additional fundamental data that influences my views, I will provide updates accordingly.
Thank you for following along with this journey, and I remain committed to sharing insights and updates as my trading strategy evolves. As always, please feel free to reach out with any questions or comments.
Other posts related to this particular position and scrip, if any, will be attached underneath. Do check those out too.
Disclaimer : The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It’s essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It’s important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
PONDY OXIDES AND CHEMICAL LIMITED - TARGET -Rs 1800/-POCL is in the metallic and non-metallic recycling industry as India’s largest secondary Lead manufacturer in Lead Alloys. Its core product, lead and lead alloys, is mainly used in making lead-acid batteries. Company converts scraps of various forms of Lead, Aluminium, and Copper into Lead Metal, Aluminium Metal, Copper, and its Alloys. It carries out smelting of Lead Battery scrap to produce secondary lead metal, which is further transformed into Pure lead and Specific Lead Alloys. Further, company also manufactures Zinc metal and Zinc Oxide.
POCL has a robest financial performance and DII's like Bandhan Small Cap Fund & Bajaj Finserv Flexi Cap Fund has stated building positions in the stock.
Please consider below long postions:
1. Enter partial long postions at Rs 1000/-
2. Downward average at Rs 888/-
3. Maintain strick stoploss for all quantities at Rs 800/-
4. Book targets at Rs 1800/- for all posions as per ABCD pattern.
Positional setup and tweet-ready summary for Pondy Oxides & Chem🧪 Technical Analysis (Daily & Weekly Setup)
Trend & Moving Averages: Price is trading above the 5‑, 9‑, and 13‑period EMAs, indicating a clear bullish momentum. EMAs are aligned upward, suggesting trend continuation.
Support & Resistance Zones: Immediate support lies around ₹1,100‑₹1,150 (recent consolidation). Strong resistance lies at ₹1,180‑₹1,190 (near 52-week high).
Supertrend: On a daily timeframe with default settings (10, 3), price is clearly above the indicator, showing robust bullish sentiment.
Entry Zone: ₹1,130‑₹1,150 is an optimal buy zone if price retraces to the EMA cluster or previous support.
Targets & Stop-loss: Target near ₹1,180‑₹1,190, stop-loss just below ₹1,100.
📊 Fundamental Snapshot
Sourced from Screener, Moneycontrol, Trendlyne, and other consolidated data:
Market Cap: ₹3,200–3,300 Crore
Revenue (TTM): ₹2,215 Cr | Net Profit: ₹70–78 Cr
Valuation:
P/E ratio around 45×–47×
P/B ~ 5.3×–5.4×
Screener
StockAnalysis
Margins & Returns:
ROE ~ 12–13%, ROCE ~ 15–16%
Net Profit Margin ~ 3.2%, Operating Margin ~ 5–6%
Solvency & Strength:
Debt-Equity ratio ~ 0.3 (consolidated) — low debt
Altman Z‑Score ~ 17–18, indicating strong financial health
Smart Investing
Growth Momentum:
Revenue growth ~33–36% YoY; Net profit jump ~82% YoY in recent quarter
Quarterly PAT up nearly 90%, revenue up 36% YoY in Q1 FY26
✅ Summary & Trade Plan
Aspect Insight
Technical Bias Bullish with strong EMA structure and Supertrend confirmation
Entry Zone ₹1,130–₹1,150
Target ₹1,180–₹1,190
Stop-Loss Below ₹1,100
Valuation Alert Stock trades expensive at 45×–47× P/E vs market average
Fundamental Strength Healthy margins, improving profits, low debt, strong solvency metrics
Overall, POCL exhibits robust technical momentum backed by fundamental growth, though valuation remains rich. Risk-reward is favorable within the ideal entry zone, with a tight stop-loss discipline.
Pondy Oxide, Kindly do your own studyThis stock is in momentum in weekly time frame.
Monthly time frame- stock has completed 4 wave structure and looks like its in 5th wave.
Weekly-stock has challenged upper bollinger band
Weekly MACD -PCO stat
Weekly RSI is in momentum
Weekly ADX is strong
Daily price is in momentum and volume has increased
NSE:POCL - Breakout from Double Bottom and Falling WedgeTechnical Analysis:
POCL has recently shown a strong bullish breakout from both a Double Bottom pattern and a Falling Wedge pattern, indicating a potential upward movement in the stock price. The breakout above key resistance levels suggests that the stock might be poised for significant gains.
Double Bottom Pattern:
The Double Bottom pattern, typically seen as a bullish reversal pattern, was confirmed with a breakout above the neckline resistance at around INR 875. This breakout was accompanied by a surge in volume, further validating the pattern.
Falling Wedge Pattern:
In addition to the Double Bottom, POCL has also broken out of a Falling Wedge pattern. Falling Wedges are generally considered bullish continuation patterns, and the breakout above the upper trendline at around INR 880 reinforces the bullish sentiment.
Potential Trade Setup:
Entry Point: After a confirmed breakout above the ₹ 875 level.
Stop Loss: Below the recent swing low at ₹ 850.
Target 1: ₹ 980
Target 2: ₹ 1063
Volume Confirmation:
The breakout was confirmed with a significant increase in trading volume, which adds to the reliability of the pattern and the potential for further upward movement.
RSI Analysis:
The Relative Strength Index (RSI) is currently trending upwards but remains below the overbought territory, indicating that there might still be room for further gains without immediate risk of a pullback.
Disclaimer:
This analysis is for informational purposes only and does not constitute investment advice. Trading stocks and other financial instruments involves risk and can result in significant financial loss. Past performance is not indicative of future results. Always conduct your own research or consult with a professional financial advisor before making any investment decisions.
Blasting Oxidation Starts at Pondy Oxides & Chemicals :) :) :)The Chemical Sector was looking Super Bullish when compared to the Nifty 50. Many Chemical stocks were hitting Sky high last week.
Pondy Oxides & Chemicals is a Multi-bagger stock which already gave me more than 2x-3x returns last year. I booked my profits and after brief gap I re-entered the stock again in Q3/Q4 2023 and now it has given me 55% returns so far.
Technicals:
Weekly: Cup & Handle BO Completed with target of 785
Monthly: With 20% UC today - it has broken out of Another much Larger C&H pattern at Monthly levels for a 2x Target of 1300+
The Oxidation has just started - don't give up now.....The Real Blast is yet to happen. Keep holding your winners
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