 "Fertilizers, Farmers")
Shares of fertiliser-related companies were in focus on today after the government on Wednesday approved a subsidy of Rs 60,939.23 crore for non-urea fertilisers for the first six months of FY23. The said move would enable companies to continue selling the vital soil nutrients at affordable rates to farmers.
Earlier, this month, fertiliser companies had raised DAP prices by Rs 150 per bag from Rs 1,200 to Rs 1,350. After today's support, companies will be able to sell one bag of Di-Ammonia Phosphate (DAP) at Rs 1,350 because the Centre will absorb the remaining cost of the same, estimated to be around Rs 2501 as subsidy. READ MORE
Fertilizer shares have so far outperformed the markets in this calendar year. Stocks such as Madras Fertilizers has doubled, while Gujarat Narmada Valley Fertilizers and Chemicals, and Deepak Fertilisers & Petrochemicals Corp have surged nearly 90 per cent so far in 2022.
Gujarat State Fertilizers & Chemicals has gained over 50 per cent, while Coromandel International, which delivered negative returns in 2021, has now added 21 per cent in the current year.
Right now, the bullish sentiment appears overrated, but the selling pressure has been unable to outrun the bulls, rather every up move hints at a continuation of a bigger trend.
Gujarat State Fertilizers & Chemicals has gained over 50 per cent, while Coromandel International, which delivered negative returns in 2021, has now added 21 per cent in the current year.
Right now, the bullish sentiment appears overrated, but the selling pressure has been unable to outrun the bulls, rather every up move hints at a continuation of a bigger trend.
Here’s the overview on fertilizer stocks for the upcoming sessions based on the charts:-
Madras Fertilizers Ltd (MADRASFERT)
Likely target: Rs 70 (after crossing Rs 60)
Upside potential: 16%
The shares of Madras Fertilizers have broken out of the “Flag Pattern” signifying a bullish bias, according to the daily chart. A decisive close above Rs 60 would indicate a fresh breakout instilling a move towards the Rs 70 mark. The medium-term outlook remains optimistic over the support of Rs 47 level, indicates the weekly setup. CLICK HERE FOR THE CHART
Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC)
Outlook: Needs to defend Rs 800 mark
The stock has witnessed a selling pressure over the Rs 900 mark. It did make continuous attempt to conquer the hurdle. However, the current chart structure shows its inability to overcome the selling obstacle, as per the daily chart. At present, the immediate support for the stock comes at Rs 800 and if the stock defends this mark, the probability of recovery becomes very high. The immediate hurdle falls at Rs 875. CLICK HERE FOR THE CHART
Deepak Fertilisers & Petrochemicals Corp. Ltd (DEEPAKFERT)
Outlook: Stands strong above breakout levels
The stock has rather broken out of the pressure range - Rs 660 to R 630 in the early April, shows the daily chart. The current weakness indicates the retest of the breakout range. The outlook looks promising as long it upholds the breakout mark, says the daily chart. The stock may show revival and rebound towards Rs 710 level. CLICK HERE FOR THE CHART
Gujarat State Fertilizers & Chemicals Limited (GSFC)
Outlook: Consolidation range
The stock is consolidating in a tight range of Rs 185 to Rs 165 since mid-April. A clear move above this range could lead to a breakout. As of now, the immediate support for the stock exists at Rs 170 on a very short-term scale. CLICK HERE FOR THE CHART
Coromandel International Limited (COROMAMDEL)
Likely target: Rs 910 and Rs 950
Upside potential: 4.50 to 9%
The stock is attempting to cross the horizontal resistance at Rs 870, as per the daily chart. The medium term outlook is well poised above Rs 800 level. The breakout shows a rally in the direction of Rs 910 and Rs 950 levels. Short-term support comes to Rs 840, which needs to be considered on a closing scale. CLICK HERE FOR THE CHART
