Investors with a short-term perspective can buy the stock of Chambal Fertilisers & Chemicals at current levels. Since the August 2013 low at ₹30, the stock has been on an intermediate-term uptrend. Within this uptrend, the stock is in a medium-term term sideways consolidation phase with an upward bias. This sideways movement is positive for the stock. Recently, it managed to find support around ₹64 and the 50-day moving average also cushioned the stock around this level.
On Tuesday, the stock surged 4.8 per cent, decisively rallying above its 21- and 50-day moving averages. The indicators on the daily as well as weekly chart feature in the positive territory implying upward momentum. The short-term outlook is bullish for the stock. It can continue its up move and reach the price target level of ₹70.5 and ₹72 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹66.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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