Gujarat State Fertilizers & Chemicals Ltd, NFL, MFL: Top fertilizer stocks to buy this week: Experts

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher Pvt. Ltd., has highlighted five fertilizer stocks that show strong potential for growth. Here are the details and recommendations:

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC)

Buy Price: ₹668

Target Price: ₹800

Stop Loss: ₹600

Analysis: GNFC has been performing well, forming a higher bottom pattern on the daily chart and moving above the significant 200-day moving average (DMA). With increasing volume and a strong technical chart, the stock is expected to reach the ₹800 target, while maintaining a stop loss at ₹600.

Gujarat State Fertilizers & Chemicals Ltd (GSFC)

Buy Price: ₹238.90

Target Price: ₹295

Stop Loss: ₹210

Analysis: After a correction from ₹332 to ₹184, GSFC has shown a rebound, indicating potential for further upward movement. The Relative Strength Index (RSI) hitting the oversold zone suggests a trend reversal. With good volume participation, the stock is anticipated to reach ₹295, with a stop loss at ₹210.

Rashtriya Chemicals and Fertilizers Ltd (RCF)

Buy Price: ₹147

Target Price: ₹180

Stop Loss: ₹135

Analysis: RCF has been consolidating between ₹130 and ₹150, with potential for further gains upon breaching ₹155. The RSI indicates improvement and a trend reversal, making ₹180 a feasible target, with a stop loss at ₹135.

National Fertilizers Limited (NFL)

Buy Price: ₹101.90

Target Price: ₹130

Stop Loss: ₹86

Analysis: NFL has been in consolidation, needing a decisive move above ₹108 to strengthen its trend. An improved bias past ₹100 suggests potential to reach ₹130. The RSI shows gradual improvement, supporting this target with a stop loss at ₹86.

Madras Fertilizers Ltd (MFL)

Buy Price: ₹87.80

Target Price: ₹115

Stop Loss: ₹75

Analysis: MFL has corrected from ₹124 to ₹75, showing a trend reversal and forming a higher bottom pattern. Hovering near the 200 DMA level, a breakout above ₹90 could trigger a rise to between ₹110 and ₹120. The stock is expected to reach ₹115, with a stop loss at ₹75.

Market Overview

On May 21, 2024, the Indian stock market benchmarks Sensex and Nifty 50 ended on a flat note, with Sensex closing slightly lower and Nifty 50 slightly higher. However, the mid and small-cap indices achieved new record highs, indicating robust market activity in these segments.

Fertilizer stocks particularly performed well, with Sikko Industries Ltd, Madras Fertilizers Ltd, and Rashtriya Chemicals & Fertilizers Ltd among the top gainers.

Disclaimer

The recommendations provided by Vaishali Parekh reflect individual analysis and are not endorsed by Live Mint. Investors should seek advice from certified financial experts before making investment decisions.