We recommend a buy in the stock of Chambal Fertilisers & Chemicals from a short-term perspective. It is evident from the charts of the stock that since finding support at around Rs 66 in February and March this year, the stock changed its direction and started to trend higher.

In late June, the stock took support from its long-term base level at around Rs 73 and resumed its uptrend. It has been on a short-term uptrend from this support level and its uptrend line is in tact. While trending higher, the stock breached its 50- and 200-day moving averages around Rs 80 and is trading well above them.

Reinforcing the bullish momentum, the stock broke out of its medium-term resistance at Rs 89 by gaining seven percent last week. Further, it rose 5.6 per cent on Monday. We observe that there has been an increase in volumes over the past five trading sessions. Both daily and weekly relative strength indices are featuring in the bullish zone and monthly RSI has just entered in to this zone.

Daily as well as weekly moving average convergence divergence indicators are hovering in the positive territory implying upward momentum. We are bullish on the stock from a short-term perspective. We expect the stock's up-move to continue until it hits our price target of Rs 100.5 or Rs 103.5 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 94.8.

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