The fertilizer sector is gearing up for a significant rally, showing strong long-term potential in the stock charts of select companies. Recently, the sector has had a mixed performance but is now indicating the beginning of a major upward trend.
Certain fertilizer stocks have formed higher tops and bottoms on their medium-term charts, suggesting a probable trend change and a resumption of the uptrend. The sector’s overall outlook is positive, and experts believe it will see significant growth in the coming years, according to Manav Chopra from Nuvama Institutional Equities.
Chopra has identified three fertilizer stocks with high growth potential, expecting gains of up to 113%. These stocks are Chambal Fertilisers & Chemicals, National Fertilizers, and Rashtriya Chemicals & Fertilizers (RCF).
All three stocks surged up to 11% on Tuesday, hitting their 52-week highs. RCF’s share price increased by over 11%, National Fertilizers went up by more than 9%, and Chambal Fertilisers rose by over 8%.
Top Fertilizer Stock Picks:
Chambal Fertilisers & Chemicals | Buy | Target Price: ₹765
Chambal Fertilizers has a history of doubling in value within 16-18 months of breaking its 52-week highs. The current market setup indicates a strong uptrend with reversal patterns and momentum indicators confirming a new high. Nuvama Equities suggests a ‘Buy’ with an initial target price of ₹580 and a second target price of ₹765, implying a 75% upside from Tuesday’s closing price.
National Fertilizers | Buy | Target Price: ₹255
National Fertilizers has been consolidating, holding support around the ₹110 – 100 range above its 50-day simple moving average. Analysis indicates the stock is resuming its uptrend and is poised for a new high. The brokerage recommends a ‘Buy’ with a first target of ₹185 and a second target of ₹255 per share, suggesting a potential 110% increase.
Rashtriya Chemicals & Fertilizers (RCF) | Buy | Target Price: ₹370
RCF has broken through a 16-year resistance pattern and formed a higher base around ₹140-130, indicating previous resistance is now a support zone. Multiple bullish candlesticks validate the presence of strong buying activity. RCF has maintained levels above its long-term support and shows demand at lower levels. The MACD bullish crossover above the zero line and a trendline breakout in price further support a bullish outlook. The brokerage sets a ‘Buy’ rating with a target price of ₹275 and a second target price of ₹370, indicating a potential 113% increase.
These stock picks come from detailed analysis and have strong growth potential in the fertilizer sector.
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