Chemical Stocks - Seen Having Peaked Out?

Chemical stocks have seen good run up in the last 6 months (mainly Benzene based chemicals), due to global  shortage seen of Benzene, as Refineries across the globe were seen either closed or were operating at lower capacity. But now these refineries are back to its normal levels of operations, which has made ample availability of Benzene, Chemicals have base raw material as Benzene or Aniline.   

All Benzene based chemicals have seen a fall of an average of 20%  in realisation last week, with poor off-take, as users are not buying, as they are holding inventory and are expecting more price fall. There are many listed stocks, having Benzene as their raw material, which may get impacted on falling margins, thus making shares to trade soft.

Few such stocks are GNFC, GSFC, IG Petro, Thirumalai Chemicals, Meghmani Organics, Aarti Industries, Atul Ltd, etc. So, one may avoid buying them now. Even overall this sector seen is seen in huge overgought zone, while any profit booking may lead to big fall in share price.

This is not a sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.