Chambal Fertilizers & Chemicals Ltd

NSE :CHAMBLFERT   BSE :500085  Sector : Fertilizers

About Company: Chambal Fertilizers & Chemicals Ltd is engaged in production of Urea from its own manufacturing plants. It also markets/ deals in other fertilizers and Agri-inputs. It also has a Joint Venture for manufacture of Phosphoric Acid in Morocco. The company was also engaged in Software business, However, in FY21, it sold assets and transferred certain liabilities of the business to cease the operations of the software business.

News in Chambal Fertilizers: The stocks got added in the F&O or derivative segment from November 2021 Series. Other Stocks which got added in F&O Segment are Atul, First source Solutions (FSL), Whirlpool of India, SBI Cards and Payment Services (SBI Card), Laurus Labs, Birla Soft and Gujarat State Petronet.

Daily Chart of Chambal Fertilizers:

Technical Outlook of Chambal Fertilizer:

Stock on Thursday 28th Oct 2021 got added to the F & O segment. Chambal fertilizer rallied 4.58% and closed at 358.25 on NSE. Technically stock has started gaining momentum after short term correction. Stock formed 3 Green candles after the correction ended. We plotted Fibonacci retrenchment from All time highs at 451 to recent lows of 315.20 and it can be observed that stock managed to close above 0.236% Fibonacci level and once closed above 0.382% levels which is at 367.70 we may see further up move in the stock towards 52 Week highs. Also Squeeze Momentum Indicator is trading in the Negative zone and once it enters into green stock can rally towards a higher level.

Hence we recommend Trader to go long on stock only once it closes or sustains above 367.70. Expected targets on the target on the upside are 421- 451, Stop loss should be maintained below 315. Point to be noted is that one should enter the stock only above 367.70.