Technical Analysis

Chart Focus: Chambal Fertilisers (₹151) - Buy

Yoganand D | Updated on November 24, 2018 Published on November 24, 2018

Indian agriculture consumes over 30 million tonnes of chemical fertiliser N per year, but about 70 per cent of it is not utilised by crops and causes pollution of soil, water and air.

Chambal Fertilisers(₹151): Buy

The stock of Chambal Fertilisers & Chemicals surged 5 per cent on the back of above-average volume on Thursday, breaking above a vital barrier at ₹146. After testing this resistance for more than a month, the stock eventually breached it last week. Besides, its recent rally has decisively surpassed the 21- and 50-day moving averages and hovers well above them. Following a medium-term downtrend, the stock found support at the long-term base level of ₹135 in mid-July. This base level cushioned it in early October. Since then, the stock has been trending upwards.

 

 

 

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting upwards in the neutral region. Moreover, the daily price rate of change indicator features in the positive territory, depicting buying interest. The outlook is bullish for Chambal Fertilisers. The stock has the potential to trend upwards and reach the medium-term price target of ₹175 with a small pause at ₹165. Investors with medium-term horizon can buy the stock at current levels while maintaining a fixed stop-loss at ₹140 levels.

(This recommendation is based on technical analysis. There is a risk of loss in trading)

Published on November 24, 2018
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