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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