Soaring prices could trigger up to 17% upside in these 5 fertiliser stocks

The overall trend in the fertiliser space remains bullish, with stocks like Chambal Fertilizers & Chemicals, Aries Agro and National Fertilizers indicating strong upside ahead

Fertilizer stocks have been in the limelight as fertilizers prices have skyrocketed owing to the Russia-Ukraine war. According to a Business Standard report, fertilizer sales, especially of Muriate of Potash (MoP), have been severely impacted.  

The sale of Muriate of Potash (MoP) has declined 39 per cent from pre-pandemic levels and 48 per cent, when compared to the previous year season, because farmers shunned this vital crop nutrient in favour of urea, di-ammonia phosphate and NPKS (sodium, phosphorus, potassium, and sulphur) because of high prices. READ MORE

Separately, the shares may remain on investors' radar ahead of the presentation of the Union Budget for financial year 2023-24 as it comes under the all-important agriculture sector. 

On the bourses, shares of fertilizer companies traded with robust gains on Monday with Aries Agro and Nagarjuna Fertilizers & Chemicals rising 4.50 per cent and 2.80 per cent, respectively. Chambal Fertilizers & Chemicals, too, gained 2.20 per cent, while Coromandel International and National Fertilizers added 0.50 per cent each. 

Against this, here’s the technical outlook to help you understand the next trend for fertilizer stocks:

Chambal Fertilizers & Chemicals Limited (CHAMBLFERT)

Likely target: Rs 335 and Rs 370

Upside potential:  7% to 17%

While the overall trend on the daily chart exhibits a bearish bias, the recent reversal from the lows of Rs 280 mark, indicates that the stock has now successfully defended ground over Rs 300. Until this cushion is upheld, the trend appears to be in favour of bulls for at least from a short-term perspective. The immediate barrier for the stock is seen at Rs 335, upon surpassing that it could rally to Rs 370, its next looming hurdle. CLICK HERE FOR THE CHART

Aries Agro Ltd (ARIES)

Likely target: Rs 180

Upside potential:  14%

There is a perfect “Cup and Handle” breakout, on the weekly chart of Aries Agro. This illustrates a bullish outlook for the stock in the coming months. The present momentum seems headed towards Rs 180, which has been the struggling level since January this year. The support for the stock exists at Rs 140-mark. In addition, the medium-term bullishness only gets negated if the stock breaks Rs 128 mark. CLICK HERE FOR THE CHART

Nagarjuna Fertilizers and Chemicals Ltd (NAGAFERT)

Outlook: Breakout over 100-WMA.

Shares of Nagarjuna Fertilizers & Chemicals are determinedly holding the support of 200-weekly moving average (WMA) since the last three months. This bullish strength now needs to overcome the hurdle of Rs 10.20, which is its 100-WMA. As and when this happens, the trend would breakout further to reach at Rs 15 level. CLICK HERE FOR THE CHART

Coromandel International Limited (COROMAMDEL) 

Likely target: Rs 992.50

Upside potential:  5%

Coromandel International shares have firmly broken out of the 200-day moving average (DMA) hurdle placed at Rs 931, with strong volumes. The trend is headed toward Rs 992.50, which is the 100-DMA barrier. Going ahead, the 50-DMA set at Rs 950.30 needs to defended on a closing basis. If the stock succeeds in doing so, the technical probability of stock continuing the bullish bias looks very solid. CLICK HERE FOR THE CHART

National Fertilizers Ltd (NFL)

Likely target: Rs 70

Upside potential:  10%

After breaking out of Rs 56-54 range, the stock has surged vertically, with volumes in support of the upward trend. The stock is on the track to reach further highs of Rs 70, with momentum witnessing positive accumulation on every healthy correction. Immediate supports for the stock are placed at Rs 60 and Rs 58 levels, according to the daily chart.  CLICK HERE FOR THE CHART