Subsidy Booster: GNFC, Chambal, GSFC eye up to 11% gain amid bullish bias

Major stocks in fertlizer sector continue to trade with bullish bias, as their chart structures denote feasible upside.

Shares of fertilizer stocks will be in limelight following the cabinet approval of Rs 1.08 lakhs crore subsidy for the ongoing monsoon season. Also, the prices of urea for farmers will remain steady during the same period.

On Thursday, shares of Zuari Agro Chemicals and Chambal Fertilizers & Chemicals soared 1.50 per cent and 1 per cent, respectivel. Gujarat Narmada Valley Fertilizers and Chemicals, and Rashtriya Chemicals & Fertilizers were seen trading up 0.50 per cent.

Here’s the technical outlook for fertilizer stocks amid the approval of subsidy:-

Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC) 

Likely target:   Rs 725

Upside potential: 10%

The present trend looks optimistic as the counter provided an “Inverse head and shoulder” breakthrough, as per the daily chart. Furthermore, it has aggressively conquered the 200-DMA placed at Rs 615, and has rallied firmly in the upward direction. 

The underlying trend appears robust, as the price action is dominating sell-off in the overbought category of the Relative Strength Index (RSI). The stock is headed towards Rs 725, which emerges as the next hurdle mark. CLICK HERE FOR THE CHART

Chambal Fertilizers & Chemicals Limited (CHAMBLFERT)

Likely target:  Rs 325 to Rs 330 (Once crosses the 200-DMA)

Upside potential: 9%

While shares of Chambal Fertilizers & Chemicals have formed an “Inverse Head and Shoulder”, the breakout is ascertain once the stock price decisively leaps over Rs 303-mark, its 200-day moving average (DMA).

A breakout over the 200-DMA could spark a bullish rally in the direction of Rs 325 to Rs 330 levels. Meantime, the support for the current bullishness resides at Rs 288, its 100-DMA, as per the daily chart. CLICK HERE FOR THE CHART

Gujarat State Fertilizers & Chemicals Limited (GSFC)  

Likely target: Rs 200

Upside potential: 10%
 

Stock is in a process of breaking out of a “Golden Cross”, as per the daily chart. And when that occurs, the current momentum is likely to see added aggression. The stock overcame the barrier of Rs 180, implying a positive rally towards Rs 200 levels.

Immediate support for the stock exists at Rs 165 levels. Stock may even hit Rs 225 if manages to cross its modest hurdle of Rs 200 level. CLICK HERE FOR THE CHART

Coromandel International Limited (COROMAMDEL) 

Likely target: Rs 200

Upside potential: 11%

When considered from a long-term perspective, until the support of Rs 873, its 100-weekly moving average (WMA) is not breached; the positive bias is headed in the direction of setting a new all-time high of Rs 1,100.

The support for the stock is placed at Rs 940, its 200-DMA, which needs to be considered on the closing basis, as per the daily chart.  CLICK HERE FOR THE CHART

Rashtriya Chemicals & Fertilizers Ltd (RCF)

Outlook: Trading between key moving averages

Shares of Rashtriya Chemicals & Fertilizers are narrowly trading between 100-DMA and 50-DMA, as per the daily chart. If manages to cross 100-DMA set at Rs 111 on the upside, the counter may see a positive surge to Rs 125, its next barrier.

On the contrary, if fails to hold 50-DMA placed at Rs 102, the price action may dwindle towards Rs 91 levels. The volume indicator is still sluggish, with no suggestion of any trend. CLICK HERE FOR THE CHART