Brief-term merchants can look to purchase the inventory for a doable goal of Rs 380 within the subsequent 1-2 months, they are saying.
The fertilizer inventory hit a 52-week excessive of Rs 324 on thirteenth December 2022, however it failed to carry on to the momentum.
It has given a breakout from an Ascending formation final week. If the inventory manages to carry on to 280 ranges, bulls might regain management and push the inventory value to a contemporary 52-week excessive.
The inventory shaped a Double Backside sample round 250 as soon as in March after which once more in August 2023 after which bounced again. The neckline of the sample was positioned above 312 ranges.
The inventory did handle to interrupt out from the identical final week, however it briefly fell this week a mid profit-taking – in keeping with the development seen in broader markets.
The inventory witnessed a Golden Crossover formation earlier in November which added additional momentum to the inventory value.When it comes to value motion, it’s now buying and selling above a lot of the essential short- and long-term transferring averages similar to 5,10,30,50,100, and 200-DMA which is a optimistic signal for the bulls.
The day by day Relative Power Index (RSI) is at 62.7. RSI under 30 is oversold and above 70 is taken into account overbought, Trendlyne information confirmed. The day by day MACD is above its heart and sign Line, this can be a bullish indicator.
“Chambal Fertilisers was one of many worst underperformers from Might 2022. It has corrected over 50% within the 2-month time-frame, the inventory value went down from 516 odd to a 52-week low round 260 in July 2022,” Kiran Jani CIRA, Head of Technical Analysis at Jainam Broking Restricted, mentioned.
“Put up registering a 52-week low round 260, inventory costs have been right into a time correction section since then. Throughout that point, we had witnessed the vary from 260 to 300. Nonetheless, for the previous couple of months it has began buying and selling into rising and made an enormous ascending triangle sample,” he mentioned.
Since July 2023 we’re seeing costs have began transferring up in a better high / greater backside sample and registered a 23% achieve within the final 4 months.
“On the present juncture, we are able to see a re-testing of the earlier resistance zone with bullish divergence seen on the chart. The value has given a breakout from an ascending sample and from the latest excessive rested similar breakout,” highlights Jani.
“We’re seeing buying and selling above its 50 and 200 SMA for a very long time. Wanting on the relative energy index (RSI-14) is displaying the bullish hidden divergences,” he mentioned.
“So forward of funds, election 2024, and contemplating the present chart sample we predict costs to the touch 380 if costs maintain 280 ranges,” really useful Jani.
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(Disclaimer: Suggestions, recommendations, views, and opinions given by consultants are their very own. These don’t signify the views of the Financial Occasions)