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Neogen Chemicals share price jumped over 8% on Wednesday, 14 October, extending its rally for a third consecutive session. The specialty chemicals stock has gained nearly 15% over the past three trading sessions, scaling fresh record highs amid strong buying interest and improving earnings momentum.
According to market experts, the stock is witnessing a multi-session breakout, with momentum-driven buying pushing it to fresh all-time highs in the ₹2,748– ₹2,778 range. Trading volumes have also remained significantly above average, although experts have not identified any specific company announcement to explain the latest surge.
The rally gathered pace on Monday, 12 October, as the stock rose by around 6–7% on heavy volume. It continued on Tuesday, 13 October, when Neogen Chemicals touched a fresh intraday all-time and 52-week high of ₹2,613, extending its upward momentum even as the broader market remained under pressure.
According to experts, the stock's rally follows the company's report of record results for the June quarter. Neogen Chemicals posted net sales of ₹250.29 crore, while net profit surged 138.4% year-on-year to ₹17.11 crore. Its operating margin stood at 19.27%.
The stock is also trading above all its key moving averages, signalling a strong technical trend. The rebound in Indian specialty chemical stocks, coupled with improving earnings momentum following the strong quarterly performance, has further supported investor interest, according to experts.
However, with the stock scaling record highs amid elevated volumes and no clearly identified company-specific trigger, investors will be watching whether the buying momentum sustains in the coming sessions.
Neogen Chemicals shares have gained 15.08% over the past month and 26.74% in the last three months. The stock has risen 12.14% over the past week and 11.16% over the past two weeks, reflecting strong recent momentum. On a year-to-date basis, the stock has surged 130.98%, while the six-month return stands at 97.13%, as per BSE data.
Rajesh Bhosale, Technical Analyst at My Advisor Alpha, said Neogen Chemicals remains in a strong uptrend, consistently forming higher tops and higher bottoms. He noted that every dip towards the 20-day exponential moving average (DEMA) has attracted buying interest, while the stock's ability to trade at record highs despite broader market weakness highlights its relative strength. Bhosale expects the outperformance to continue, with declines likely to be bought into. He pegged support at around ₹2,500 and said the stock could extend its rally towards ₹3,000.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said Neogen Chemicals has broken above horizontal trendline resistance on the daily chart, with the breakout supported by a sharp increase in trading volume. The stock is trading above key short- and long-term moving averages on both daily and weekly charts, indicating a positive price structure. The MACD line has also crossed above the signal line, reinforcing the bullish momentum. Shah identified ₹2,580– ₹2,590 as the immediate support zone and said the rally could extend further as long as the stock sustains above this range.
Ruchit Jain, Head of Equity Technical Research, Wealth Management, at Motilal Oswal Financial Services, said Neogen Chemicals is in an uptrend and continues to outperform the broader market. He noted that the stock is consistently trading above its 50-day DEMA, currently around ₹2,300, which is acting as support. Jain advised traders holding long positions to stay invested and ride the prevailing trend.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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