Chambal Fertilisers May Be Poised For Pullback If ₹560 Breaks: SEBI RA Deepak Pal

Despite recent weakness, Chambal Fertilisers may be on the verge of a reversal, according to the analyst. However, Stocktwits data shows cautious retail sentiment.

Chambal Fertilisers is on the analyst’s radar this week. The stock has been in a short-term decline recently, but technical indicators suggest a potential for some recovery. 

SEBI-registered analyst Deepak Pal noted that its Parabolic SAR dots suggest a possible short-term reversal, while the stock is facing resistance near its 14 and 200-day Exponential Moving Averages (EMAs).

A simple chart pattern indicates repeated reversals from the ₹545–550 zone, creating a base. Pal adds that a small hurdle around ₹560 is visible, and if Chambal Fertilizer stock sustains above this, it may enter a correction phase, leading to an upward pullback. 

He suggested that traders could consider a position with a stop loss at ₹540, targeting upside levels of ₹575.

Fundamentally, the fertiliser company has maintained stable revenues, despite facing challenges from government subsidy delays and fluctuating raw material (natural gas) prices. 

Chambal Fertilisers has a moderate debt profile, stable promoter holding, and regular dividend payout. 

Pal believes that with the government’s continued push for agri-reforms and domestic fertiliser production, Chambal Fertilisers is well-positioned for long-term growth in the agri-input industry. 

However, data on Stocktwits shows that retail sentiment is ‘bearish’ on this counter.

Chambal Fertiliser shares have risen 11% year-to-date (YTD).

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