The heightened activity in fertiliser stocks also comes ahead of Union Budget 2024. This is a general trend as the buzz around fertiliser subsidy gets stronger ahead of Budget.
The buyback will improve financial ratios like earnings per share, return on capital employed, return on equity, said the company.
Looking at the positional technical setup, it would be advisable to lighten long commitments in the resistance zone of 19,230-19,333.
On the monthly charts, MCX India has seen a horizontal resistance trendline breakout adjoining highs of October 2021 and September 2023, which is positive sign.
GNFC has given a strong breakout on the daily chart with a sharp surge in volumes. The stock has broken out from a falling channel pattern which was in force for the last 2-3 months.
The Gujarat government has announced a new policy for minimum levels of dividend distribution and bonus shares for its state public sector companies, including listed entities
Range breakout in RSI supports a bullish view on GNFC.
The next support is placed at 200-day SMA of 17,368, which coincides with Budget day's low, as breaking this may drag the Nifty towards 17,000 level, whereas the near-term resistance is expected at 17,600 followed by 17,700-17,800