The former resistance zone at ₹101–₹105 has now turned into support, with the analyst highlighting stronger fundamentals such as a diversified API mix, capacity expansions, and rising exports.
IOL Chemicals & Pharma is trading below its 52-week high, having clocked a 25% rally over the past month.
The stock has broken out of a three-year trading range, closing last week at ₹119.25 in what market watchers see as a decisive structural shift.
Breakout From Darvas Box
SEBI-registered analyst Rajneesh Sharma said that the Darvas Box pattern, which had contained the stock for three years, has now been “decisively broken.” He pointed to repeated higher lows, supply pressure, and tightening structure as signs that a breakout was imminent.
The move follows a prolonged consolidation between ₹71 and ₹105, where the stock had been capped since 2021.
Sharma described the latest weekly close as the “cleanest since 2021,” highlighting how buyer aggression steadily built up before the breakout.
Confirmation of Structural Shift
According to Sharma, the former resistance band at ₹101–₹105 has now flipped into support. A retest or consolidation at these levels would be healthy, he said, with the breakout remaining valid.
He added that the move aligns with improving fundamentals, including a diversifying API mix, capacity expansions, minimal leverage, and rising export share.
Path Ahead
Sharma called the development “more than a breakout — it’s a structural transition backed by long accumulation and improving fundamentals.”
He said the structure remains bullish as long as the ₹101–₹105 zone holds, opening the way for a move toward ₹122–₹130.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.
IOL Chemicals & Pharma’s stock has risen 42.5% so far in 2025.
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