Aarti Industries Breaks Out; Mutual Funds Increase Stake in the Stock

About Aarti Industries

AIL, the flagship company of the Aarti group, manufactures organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej, and Kutch in Gujarat, and in Tarapur in Maharashtra. The company holds a strong market position in the NCB-based specialty chemicals segment. Additionally, the company commissioned a Greenfield Nitrotoluene facility in Jhagadia in fiscal 2018 and two units for high-value specialty chemicals in Dahej in fiscal 2020. In fiscal 2017, it initiated calcium chloride facilities in Jhagadia and a multipurpose ethylation unit at Dahej. Furthermore, the company operates four full-fledged R&D centers recognized by the Department of Scientific and Industrial Research, Government of India. In fiscal 2020, it launched its flagship research and technology center in Navi Mumbai called the Aarti Research and Technology Centre, which will accommodate about 250 scientists and engineers.

Technical Observation

On the weekly chart, the stock has witnessed a breakout of a Cup-shaped pattern. The length of this cup-like pattern is about 7 weeks long, and more importantly, it’s a stage-1 cup pattern with a depth of about 15%. Interestingly, the breakout in the stock is observed on the back of robust volume as the stock has experienced the highest weekly volume in the last 8 weeks, and the volume is above average, confirming strong participation from investors. Furthermore, the Relative Strength has marked a fresh swing high, and the buyer demand stands at a great level. The weekly MACD has generated a bullish crossover, thus validating a positive bias.

Institutional Investors increased holdings

The FIIs have increased their holdings in the Aarti Industries stock from 10.83% to 10.93% in the March 2024 quarter. The number of FII investors increased from 225 to 239 in the March 2024 quarter. Mutual Funds have increased holdings from 7.54% to 8.90% in the March 2024 quarter. Overall, institutional investors have increased their holdings from 26.68% to 28.21% in the March 2024 quarter.

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