The stock had declined 12.71% in the past five sessions to end at Rs 1,785.25 yesterday, from its recent closing high of Rs 2,045.25 recorded on 2 June 2022.

On the technical front, the stock's daily RSI (relative strength index) stood at 38.667. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock is trading below its 50-day, 100-day and 200-day simple moving average (SMA) placed at 2104.40, 2151.84 and 2274.63, respectively.

Last week, a fire incident had occurred around the warehouse section of Deepak Nitrite's manufacturing site located at Nandesari, District Vadodara, in the State of Gujarat.

The company, with an emergency response team and with the support of local authorities, was able to bring the fire under control within couple of hours.

According to the media reports, seven workers had been hospitalized after inhaling smoke, while some 700 people living in the vicinity of the factory have been shifted to safer places. While several firefighters were rushed to the spot, the initial eye-witness accounts reveal damages to a large part of the factory premises due to the fire and blasts, reports added.

In an exchange filing made on Thursday (2 June 2022), Deepak Nitrite said that it had kept all concerned authorities informed and the plant operations were expected to resume in a day or two upon clearance of damaged warehouse. The cause of fire was being investigated and the company stated that it is committed to extend all assistance to the relevant authorities investigating into this matter.

Both, loss of assets as well as loss of business are covered under insurance, the company had said.

Media reports published this week stated that the Gujarat government had issued a closure notice to chemical intermediate maker Deepak Nitrite in connection with an incident of fire and series of explosions at the company's plant situated at Nandesari industrial estate near Vadodara.

As per the notice reportedly issued by the office of Director of Industrial Safety & Health (DISH), functioning under the Gujarat government's Labour & Employment department, Deepak Nitrite will not be permitted to start production activities till it follows compliances related to plant and building safety.

Offering a clarification on the same, Deepak Nitrite said that it had informed all the concerned authorities, that the cause of fire was being investigated and that the manufacturing operations shall be resumed after clearance of the damaged warehouse and that the company is committed to extend all assistance to the relevant authorities investigating the matter.

It further added that stability studies are being conducted and that the company is in the process of submission of necessary applications / documents sought by various authorities in order to obtain necessary permission to restart the plant at the earliest.

"We are confident that the regulatory authorities upon finding these reports satisfactory as welt as all other compliances met with would be prompt in allowing us to restart the plant," Deepak Nitrite said in a statement.

Deepak Nitrite manufactures intermediates and speciality chemicals besides performance products and phenol. The company has facilities in Nandesari and Dahej in Gujarat, Roha and Taloja in Mahrashtra and Hyderabad.

The chemical maker reported 7.9% decline in consolidated net profit to Rs 267.21 crore despite a 28% rise in net sales to Rs 1872.35 crore in Q4 FY22 over Q4 FY21.