Fertilizer Stocks Activated

JC Parets
May 15, 2021

Over the past few days as the market continued to churn sideways, we witnessed a set of stocks doing well as a group. As sector rotation continues to play out, we see different groups play the game of musical chairs as they move in and out of strong and weak zones.

Fertilizer stocks seemed to have gotten activated recently and there a few names here that we've been tracking for some time.

Let's take a look at the individual names:

The first one here is GSFC. Gujarat State Fertilizers & Chemicals. What we see here is a three-year base breakout with the price moving past its long-term resistance of 114. As the overhead supply has been absorbed at these levels, the price is now ready to move higher in the next leg of the rally.

The indicator has been in the bullish momentum territory, staying rather close to this zone during interim corrections as well.

We are bullish above the level of 114 with a target near 167.

Click on chart to enlarge view.

Next up, we have a name that has made it to our latest Trade of the Week post as well. UPL has been on our radar for far too long and we saw a strong bullish candlestick breakout in the week gone by. Again, we're looking at a two-year base breakout with the indicator in the positive territory lending more support to the bullish thesis.

We are bullish above the level of 695 with a target near 977.

Bharat Rasayan has been moving in a sideways range since July 2020. Following the breakout a couple of weeks ago, the price has sustained at all-time highs. This is a show of strength in the current move. The indicator too is placed comfortably in the bullish zone alluding to the strong outlook in this stock.

We are bullish above the level of 11,200 with a target near 16,100.

National Fertilizers has been playing with its resistance over the past few weeks. But it seems like the price has finally picked its course of direction. With a strong bullish candlestick above the level of 61, NFL seems to be getting ready to move ahead.

We are positive above the risk management level of 61 with a target near 90.

Chambal Fertilizers is another stock that had been moving sideways for a while. The breakout we witnessed this week alludes to growing strength in this stock. The indicator is also moving towards the bullish momentum territory. With this entire sub-group performing well acting as a good tail-wind, we may see a good rally in Chambal as well.

We are bullish above the level of 263 with a target near 407.

E I D Parry is next on the list. And what do we see here? A big base breakout of course! The price has moved past the long-term resistance level of 392 and has held on to those levels. With a little follow-through, we may see the target of 570 on the chart soon.

We are positive only as long as the price trades above the level of 392, with a target near 571.

PI Industries has been one of the strongest stocks in this sector. The price has been making higher highs and higher lows for years now. This trend seems to be continuing even now! With the recent move above the level of 2,430, the price looks good to continue its bull run.

We are bullish above the level of 2,430 with a target near 3,140.

Any stocks to track in the future?

Well yes, we have a couple of stocks on our radar that are yet to break out but may be good names to consider when the move does come through.

Dhanuka Agritech seems to be catching a bid at the former resistance. The indicator too has pushed through into the bullish momentum but we're yet to get a price confirmation on this one.

We are bullish on this stock only if the price sustains above the risk management level of 930, with a target near 1,335.

The next one is Rallis India. Although the price did rally above the resistance level of 320, it rolled over and failed to confirm a breakout.

We'd like to see a move above 320 to be bullish on this stock with a target near 382.

This was a round-up of the Fertilizer stocks that seem to be picking up pace and breaking out of big bases! A sustained move above these important levels of resistance could lead to a smart rally in these stocks.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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