GNFC, GSFC: Trading strategies for fertiliser stocks amid rebound on charts

RCF, GNFC and FACT may rally up to 15% as per their technical charts

Shares of fertiliser stocks will be in limelight post Fertilisers And Chemicals Travancore (FACT) hit a new historic peak on Tuesday. Shares of Gujarat State Fertilizers & Chemicals, Gujarat Narmada Valley Fertilizers and Chemicals and Rashtriya Chemicals & Fertilizers showed bullish rally in previous session signalling more upside in the coming session.

The domestic market traded subdued on Tuesday, while selective fertilizers stocks like Fertilisers And Chemicals Travancore and Rashtriya Chemicals & Fertilizers managed to trade in upper bullish trend. 

Here’s the technical outlook for fertiliser stocks for coming sessions:-

Chambal Fertilizers & Chemicals Limited (CHAMBLFERT)

Outlook: Breakout over the 200-DMA

While the broader trend in the shares of Chambal Fertilizers & Chemicals remains positive, with trading over the significant 200-weekly moving average (WMA) placed at Rs 247-mark, the daily chart structure reveals selling pressure and its inability to advance beyond the 200-DMA. 

The 200-DMA is placed at Rs 299 and serves as a major barrier for the present bias. Robust close over the same could spark an upside rally towards Rs 330 level. CLICK HERE FOR THE CHART

Fertilisers And Chemicals Travancore Ltd (FACT)

Likely target: Rs 450

Upside potential: 15%

A new all-time high over Rs 390-mark shall trigger fresh upside in the stock. The current trend appears resolute and aims at reaching higher levels in the coming sessions. The Relative Strength Index (RSI) is observing bullish momentum in the overbought category, as per the daily chart.

Henceforth, the crucial support exists at Rs 340-mark, which needs to be defended on the closing basis. Steadiness over Rs 360-level could reinforce the uptrend more rigidly.  The overall bias aims at reaching Rs 450. CLICK HERE FOR THE CHART

Gujarat State Fertilizers & Chemicals Limited (GSFC)  

Outlook: Stock to hit new all-time high 

Until the support of 50-day moving average (DMA) set at Rs 152.50 is protected, the price action shall favour the upside bias. On the upside, a vigorous close over the immediate hurdle of Rs 170 could propel a sharp upward rally in the direction of Rs 185, where the next breakout of a “Golden Cross” exists. 

Once Rs 185 is taken out, the counter might rally in the direction of its historic peak of Rs 195.60. The current trend looks promising, with the daily moving average functioning as a major support.  CLICK HERE FOR THE CHART

Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC) 

Likely target: Rs 650– Rs 660

Upside potential: 10%

Shares of Gujarat Narmada Valley Fertilizers and Chemicals are currently attempting to close over Rs 600, its 200-DMA. When that happens, a bullish rally towards Rs 650– Rs 660 cannot be overlooked. 

This upward bias is well supported by the 100-DMA set at Rs 558 mark. Unless this level is breached, the trend shall continue to endure the optimistic bias. CLICK HERE FOR THE CHART

Rashtriya Chemicals & Fertilizers Ltd (RCF)

Likely target: Rs 130

Upside potential: 12%

Shares of Rashtriya Chemicals & Fertilizers are poised to move higher following a stable rally over its 200-DMA. The major breakout exists at Rs 116, where the stock shall aim to reach in coming sessions.

Above Rs 116, the sharp upside towards the next major hurdle of Rs 130 is possible. The current momentum firmly suggests the underlying trend is on the verge to hit Rs 130 levels. The Moving Average Convergence Divergence (MACD) has risen over the zero line, indicating that the momentum is favouring a positive rally. CLICK HERE FOR THE CHART