It seems that nationwide lockdown has not much impacted the fertilizer sector. In May 2020, the Indian Fertiliser industry has witness sales growth of 25% to 5 million tonnes as compared to 4 million tonnes in the same month last year. Coromandel International and Chambal Fertilisers have seen major sales growth in the sector. The research firm Prabhudas Lilladher is bullish on 5 stocks in the sector and among that they expect stock Insecticides India may see the upside of 82 percent, report dated June 09, 2020.
By Shitij GandhiSMC Global Securities
Overall derivative data indicates long rollover and most of the Nifty futures positions has been rolled till now with the average of 9,250 futures. Derivative data indicates bullish scenario to continue.
The Nifty has multiple strong supports placed at lower levels. Various supports are placed at 9,250, 9,200, 9,170, 9,100, 9,050, and 9,000 spot levels. Short sellers are again on the back foot; therefore we will see short covering on every dip.
In the last 2 trading session, we have seen aggressive unwinding in call and writing in ATM 9,200, 9,300 puts. Data indicates that Nifty is likely to expire towards upper band of the month.
In the May option contracts, we are seeing options open interest building up in 9500 calls and 9000 puts, so the probable range for next expiry could be 9000-9500 with a positive bias.
In option data, we have been seeing a shifting of range to the upper band. Market Undertone is likely to remain bullish with the support of consistent FII buying and short covering.
On the technical front, 9,200-9,250 spot levels are strong support zone and the current trend is likely to continue towards 9,400-9,500.
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After consolidating in a narrow range of Rs 60-80, the stock has finally given breakout above its key resistance level and formed an ascending triangle pattern on daily charts which is considered as a reversal/continuation pattern.
Moreover, the rise in price in the last session accompanied by large rise in volumes clearly indicates the interest of bulls in this scrip. On daily charts, all long-term moving averages are placed well below the price which again supports the upside in prices.
Traders can accumulate the stock within range of 85-82 for the upside target of 96 with a stop loss below 74.
The stock has taken consistent rally from 58 to 76 levels in recent past and then taken pause to go into consolidation for almost more than two months. In Tuesday’s trading session, consolidation breakout has been seen along with Bank Nifty making new highs on local bourses.
On daily charts stock has also formed inverted head & shoulder formation which is considered as bullish in nature and the breakout above the neckline of the formation also confirms for the next up move in coming sessions. Traders can accumulate the stock in the range of 75-76 for the upside target of 85 with a stop loss below 70.
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After rising from Rs2550 to Rs2900 levels, the pull back in prices has been seen as the stock has taken support at multiple moving averages around Rs 2,800 levels.
On the daily charts, the stock has also formed a double bottom formation around Rs2,750 and bounced sharply from there. On broader picture, upside in prices is once again get supported as ascending triangle formation can be seen on daily charts which is generally reversal/continuation pattern.
Traders can accumulate the stock in the range of Rs 2895-2875 for the upside target of Rs3,100 with a stop loss below Rs2,750.
The stock has formed a double bottom formation around 680 levels in past and has risen sharply from there to test 750 levels. The consolidation in prices has been seen in a range of 740-760.
On daily charts, the stock has formed pennant formation which is categorized as a continuation pattern. The breakout above its key resistance level in the previous session along with the rise in volumes suggests for next up move in prices. Traders can accumulate the stock in a range of 775-770 for the upside target of 900 with a stop loss below 700.
The stock has given breakout above the key resistance level of 90 after consolidating in the range of 80-90 for more than three months. On daily charts stock has also formed the inverted head and shoulder formation which is considered as bullish in nature.
The breakout in prices above neckline along with rising volumes confirms the next big move in prices. Traders can accumulate the stock in a range of 97-95 for the upside target of 112 with a stop loss below 86.
Disclaimer: The author is Senior Research Analyst, SMC Global Securities. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
