Are chemical & fertiliser shares ready for fresh rally? Key levels here

Chemical & fertiliser stocks rallied up to 30 per cent in June, thereafter, most of them corrected on account of profit-taking. Will the rally resume in July? Here's what the technical charts suggest.

Shares of chemical and fertiliser companies such as GNFC, Chambal Fertiliser GNFC, Chambal Fertilisers and Coromandel have consolidated post the sharp rally in June.

Will the consolidation result into a price correction or will these stocks breakout for a fresh rally? 

Here are five chemical and fertiliser related shares, which also trade in the derivatives segment. Here's what the futures & options (F&) data and technical charts suggests for these stocks.

Chambal Fertilisers

Last close: Rs 507

Downside Risk: 9.3%

Support: Rs 495; Rs 460

Resistance: Rs 530; Rs 560

Chambal Fertilisers stock rallied over 30 per cent in June. The stock was up 2 per cent on Friday, and saw a fresh addition of 8.4 per cent in open interest (OI) in the July series. 

After hitting a high of Rs 574 on June 21, the stock slipped and has been consolidating in the price band of Rs 530 - Rs 495. Key momentum oscillators on the daily chart are showing a mixed bias,

The daily chart suggests that a breakout from the existing range could see the stock test support at Rs 460-odd levels. On the upside, the stock will need to trade consistently above Rs 560 for fresh upward momentum. CLICK HERE FOR THE CHART

Coromandel International

Last close: Rs 1,601

Downside Risk: 9.1%

Support: Rs 1,500; Rs 1,455

Resistance: Rs 1,640

Coromandel International July contract saw 8.4 per cent addition in OI, as the stock rose nearly 2 per cent on Friday.

Technically, the stock is trading close to its key resistance at Rs 1,640. Among the key momentum oscillators, the MACD (Moving Average Convergence-Divergence) has given a negative crossover; hence the stock may face some downward pressure in the near-term.

On the downside, the stock is expected to find support around its 20-DMA (Daily Moving Average) at Rs 1,500-odd levels, below which the next key support stands at Rs 1,455. CLICK HERE FOR THE CHART

GNFC

Last close: Rs 711

Upside Potential: 11.1%

Support: Rs 685; Rs 667

Resistance: Rs 750; Rs 790

GNFC had rallied over 5 per cent on Friday, and the OI jumped nearly 80 per cent, indicating a long buildup at the counter. 

Technically, GNFC stock after a 30 per cent intra-month rally from a low of Rs 597 to a high of Rs 777, it corrected and tested support around Rs 660, which coincides with the super trend line support on the daily chart. 

The stock is seen trading firmly above its key moving averages, with near support seen at Rs 685 (20-DMA), followed by the 100-DMA at Rs 667. On the upside, the stock has near resistance at Rs 720; above which it can rally to Rs 750 - Rs 790 levels. CLICK HERE FOR THE CHART

Tata Chemicals

Last close: Rs 1,103

Upside Potential: 5.2%

Support: Rs 1,090

Resistance: Rs 1,125

Tata Chemicals stock gained 21 per cent from its June 04 low of Rs 960 to hit a high of Rs 1,162 on June 21. Thereafter, the stock witnessed profit-taking and tested support around its 50-DMA at Rs 1,090 levels. CLICK HERE FOR THE CHART

The stock seems to have resumed the uptrend, and is likely to test Rs 1,160 again. Interim resistance can be expected around Rs 1,125 levels. On Friday, the stock rose 1 per cent backed by 2.7 per cent addition in OI.

Navin Fluorine International

Last close: Rs 3,574

Upside Potential: 6.3%

Support: Rs 3,515; Rs 3,455

Resistance: Rs 3,670; Rs 3,720

Unlike its peers, Navin Fluorine had a down day on Friday, as the stock slipped 1.3 per cent, but saw the OI rise by 3.4 per cent.

Technically, the stock is seen testing support around its 200-DMA, which stands at Rs 3,515; below which the next major support exists at Rs 3,455. The bias is likely to remain positive as long as the stock holds above these levels.

On the upside, Navin Fluorine stock needs to trade consistently above Rs 3,720 levels, in order to gain upside momentum; near hurdle is seen at Rs 3,670. Post which, the stock can potentially rally to Rs 3,800 levels. CLICK HERE FOR THE CHART