These fertiliser shares can rally up to 23% amid monsoon boom forecast

Shares of fertiliser companies have rallied up to 15 per cent so far in June following above normal monsoon forecast for India; here are four stocks that look strong on charts.

Shares of fertiliser companies have been in demand so far this June on the back of above normal monsoon forecast in India. 

The Indian Meteorological Department has predicted above average monsoon (106 per cent of long-term average) in 2024, indicating likely development of La Niña conditions during the second half of the monsoon season.

In general, La Nina is associated with good rainfall in India, and may set in during the Kharif season, which augurs well for fertilisers companies. 

So far in June, seven fertiliser stocks have zoomed over 10 per cent each. Nagarjuna Fertilizers and Chemical and The Fertilisers and Chemicals Travancore (FACT) have gained over 15 per cent each. Others include - Zuari Agro Chemicals, Coromandel International, Krishana Phoschem, Southern Petrochemical Industries and Mangalore Chemicals & Fertilizers.

Others such as - Madras Fertlizers, Chambal Fertilisers, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Deepak Fertilisers, Rashtriya Chemicals & Fertilzers (RCF) and Gujarat State Fertilizers & Chemicals are up 4-10 per cent each.

Here are four fertilisers shares that look strong on charts and can potentially rally up to 23 per cent from present levels.

Nagarjuna Fertilizers

Current Price: Rs 12

Upside Potential: 23%

Support: Rs 11.53; Rs 11.30

Resistance: Rs 13.43

Nagarjuna Fertilizers stock has given a fresh breakout on the daily scale. The stock is likely to trade with a positive bias as long as it sustains above Rs 11.30. Near support for the stock can be expected around its 100-DMA (Daily Moving Average) at Rs 11.53. CLICK HERE FOR THE CHART

On the upside, the stock has near resistance at Rs 13.43, above which it can potentially rally towards Rs 14.75.

FACT

Current Price: Rs 776

Upside Potential: 10.8%

Support: Rs 722

Resistance: Rs 820

FACT stock is seen trading above its 100-DMA for the third straight trading session, indicating a likely change in bias at the counter post the breakdown in late February. The daily chart shows that the bias is likely to remain favourable as long as the stock trades above Rs 722 levels. CLICK HERE FOR THE CHART

Among the key momentum oscillators, the MACD (Moving Average Convergence-Divergence) is on the verge of turning positive, which shall further aid the trading sentiment at the counter. 

On the upside, the stock has near resistance at Rs 820. The stock needs to break and trade consistently above the same, for further gains to emerge. Long-term chart suggests the stock can potentially attempt a rally towards Rs 860. 

Madras Fertilizers

Current Price: Rs 103

Upside Potential: 10.7%

Support: Rs 101; Rs 94.70

Resistance: Rs 105

Madras Fertilizers is seen trading above its 100-DMA for the third straight trading session. Further, the stock is also attempting to sustain above the higher-end of the Bollinger Bands on the daily scale. The chart suggests near support for the stock at Rs 101 followed by the 100-DMA at Rs 94.70. CLICK HERE FOR THE CHART

On the upside, the stock can potentially surge to Rs 111 - Rs 114 levels. Interim resistance can be expected around Rs 105.

Paradeep Phosphates

Current Price: Rs 76.60

Upside Potential: 11%

Support: Rs 70

Resistance: Rs 81 

Paradeep Phosphates stock has given a strong breakout on the weekly chart. The medium-term bias is likely to remain favourable for the stock as long as sustains above its 50-WMA (Weekly Moving Average) which stands at Rs 70. CLICK HERE FOR THE CHART

On the upside, the stock can rally to Rs 85 levels, with interim resistance seen around Rs 81.