Indian stock market: Ending the day on a flat note, the Indian stock market benchmarks, the Sensex and the Nifty 50, experienced cautious trading on Tuesday, May 21, with the majority of stocks facing losses.
The Sensex closed 53 points (0.07%) lower at 73,953.31, while the Nifty 50 finished the day 27 points (0.12%) higher at 22,529.05.
The mid and small-cap indices reached new record highs during the session.
The BSE Midcap index achieved an all-time high of 43,223.69 before closing 0.34 per cent higher at 43,191.88. The BSE Smallcap index set a new record of 48,099.29 but could not maintain its gains, ending 0.18 per cent lower at 47,873.56.
Conversely, fertilizer stocks ended on a higher note on Tuesday’s trading session, with Sikko Industries Ltd, Madras Fertilizers Ltd, and Rashtriya Chemicals & Fertilizers Ltd among the top gainers.
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher Pvt. Ltd. has recommended five stocks to buy this week in the fertiliser sector to boost your portfolio.
Stocks to buy
Gujarat Narmada Vly Frtlzrs & Chmcl Ltd: Buy at ₹668 | Target Price: ₹800 | Stop Loss: ₹600
The stock has been on the rise after forming a higher bottom pattern on the daily chart and has moved above the significant 200DMA to show strength. We anticipate the stock moving further upward in the coming days. The volume has been on the rise in recent times, and with the chart looking good technically, we recommend a buy in this stock for an upside target of 800 while keeping a stop loss of 600.
Gujarat State Fertilizers & Chemicls Ltd: Buy at ₹238.90 | Target Price: ₹295 | Stop Loss: ₹210
The stock has witnessed a decent correction from the levels of 332 to bottom out at around 184 levels and has given a bounce to signify further upside movement with strength. The chart looks very attractive and has the potential to scale up to 320 levels in the coming days. The RSI has hit the oversold zone, indicating a trend reversal to signal a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 295 while keeping a stop loss of 210.
Rashtriya Chemicals and Fertilizers Ltd: Buy at ₹147 | Target Price: ₹180 | Stop Loss: ₹135
The stock has been consolidating for quite some time at around 130–150 levels, gaining potential, and with a decisive breach level of 155, it shall further improve the bias and thereafter expect next targets of 180–200 levels. The RSI has shown improvement with a trend reversal, and one can watch for this stock to perform well in the coming days. The major support would be maintained near 200 DMA at 139 levels, so one can keep the stop loss of 135 and expect for an upside target of 180 levels.
National Fertilizers Limited: Buy at ₹101.90 | Target Price: ₹130 | Stop Loss: ₹86
The stock has been in consolidation for a long time and would need a decisive breach above the 108 zone, which is a strong barrier zone, to strengthen the trend and expect a further rise. A move past the 100 level has improved the bias, and we can expect an upside move to the 130 level. With the RSI gradually improving, we expect further gains in the coming days, with an anticipated upside potential target of 130 levels. The support would be strong near the 86 zone, below which the view would be negated.
Also read: Multibagger! Tara Chand Infralogistic stock gains 353% in a year, up nearly 1000% in 3 years
Madras Fertilizers Ltd: Buy at ₹87.80 | Target Price: ₹115 | Stop Loss: ₹75
The stock has made a decent correction from 124 to 75 levels, made a trend reversal, and formed a higher bottom-like pattern in the daily chart. It is hovering near the 200 DMA level of 89.30, and a decisive breach above 90 can trigger a breakout for fresh upward movement, with the next target expected to be between 110 and 120 levels in the medium-term time frame. The support would be maintained near the 75 zone, where the overall bias can weaken. So, one can accumulate the stock at current levels for an upside target of 115, with the chart looking good.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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Published: 21 May 2024, 06:27 PM IST
