Kunal Saraogi says that there seems to be building an intraday momentum on National Fertilizers (NFL) today ahead of Budget announcements. Currently, the NFL looks interesting after correcting from higher levels. The stock is holding just above its support level of Rs 39, it should be bought at current levels for some upside in the counter.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Rakesh Bansal says the technical structure of the National Fertilizers is looking extremely good. The stock had given a multi year breakout above Rs 39. The first target price on the stock is Rs 48 – Rs 50 and second target price is Rs 55.

See Zee Business Live TV Streaming Below:

About National Fertilizers :

National Fertilizers has five gas based Ammonia-Urea plants viz. Nangal & Bathinda plants in Punjab, Panipat plant in Haryana and two plants at Vijaipur at District Guna, in Madhya Pradesh. The Panipat, Bathinda & Nangal plants were revamped for feedstock conversion from Fuel Oil to Natural Gas, an eco-friendly fuel during 2012-13 / 2013-14. Vijaipur plants of the company were also revamped for energy savings & capacity enhancement during 2012-13, thus increasing its total annual capacity from 20.66 LMT from 17.29 LMT, an increase of 20%. The company currently has a total annual installed capacity of 35.68 LMT (Re-assessed capacity of 32.31 LMT) & is the 2nd largest producer of Urea in the country with a share of about 16% of total Urea production in the country.

Company has a Bio-Fertilizers Plant at Vijaipur with a capacity of 600 tonnes of solid & liquid Bio-Fertilizers to produce four strains of Bio-Fertilizers viz. PSB, ZSB, Rhizobium and Azotobacter are produced.
National Fertilizers is engaged in manufacturing and marketing of Neem Coated Urea, four strains of Bio-Fertilizers (solid & liquid), Bentonite Sulphur and other allied Industrial products like Ammonia, Nitric Acid, Ammonium Nitrate, Sodium Nitrite and Sodium Nitrate. The brand name of the company is popularly known in the market as ‘KISAN’.

The Nifty witnessed continued selling activity for the fourth consecutive session. The day was dominated by the bears throughout, resulting in a bearish Belt Hold candle on the daily chart. The Nifty breached the support zone of 14300-14200 as well as 38.2% retracement of the Dec-Jan rise of 14130. The index went down further to break the key psychological level of 14000 and halted near the 50% retracement mark. However, the overall structure suggests that the index can go for deeper retracements. Hence, 13750 and 13500 will be the subsequent levels on the downside to watch out for.

Other technical observations:

On the daily chart, the Nifty is between the 20-day moving average (DMA) and the 40-DEMA, of 14310 and 13880, respectively. The momentum indicator is bearish on the daily chart. On the hourly chart, the Nifty is below the 20-hour moving average (HMA) and the 40-HEMA, i.e.14270 and 14343, respectively. The hourly momentum indicator is bearish. The market breadth was negative with 637 advances and 1233 declines on the National Stock Exchange.