SP Tulsian, sptulsian.com feels investors should remain cautious on fertilizer space.
Tulsian told CNBC-TV18, "In fact I have been maintaining my negative stance in fertilizers news. The only thing the clarification which can come that the companies are allowed to operate beyond the rated capacity which earlier was restricted to 100% and then raised to 110% and gas based fertilizer plants will be really beneficiary in which the Chambal Fertilizer and RCF can get place because Chambal have their plant at Rajasthan and RFC has at Thal both are gas based plants so they can have the advantage. I don't think that the other company like NFL or Nagarjuna Fertilizer can really be the beneficiaries. It is very difficult to take a call."
He further added, "For the last couple of days maybe yesterday we have seen or even in the first half of the day we saw long positions getting liquidated. In the morning all the fertilizer stocks were dull but suddenly the spike has come of about 8 to10% across the board and generally whenever we have these kind of news flows expectations we see these kind of trading bump happening. I will be very cautious and I won't advice to take a call in any of the stock at these levels."
