Shares of this government-owned chemical manufacturer hit new high; up 45% in one month

Shares of Gujarat State Fertilizers & Chemicals (GSFC) have been on a roll hitting fresh 52-week highs consistently for the past few sessions. The fertilizer and chemical stock surged nearly 7% in Monday's intraday trade to touch fresh 52-week high value of Rs 186.30 a share on the BSE.  

At 1.15 pm, shares of GSFC were trading with 5% gain or higher by Rs 8.75 Rs 182.85 a share on the BSE. The scrip surged nearly 45% in the past one month on the NSE as on April 4, showed technical data of the chemical stock.  From Rs 126.80 a share on the NSE on March 4, the counter has gained nearly 45% or around Rs 56 as on April 4.  

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Speaking of what should investors do with this government owned chemicals and fertilizers manufacturer stock, Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, a fresh intraday breakout formation hinst at further upside in the near future.  

"On daily and weekly charts, the stock has formed a breakout continuation pattern which is grossly positive for the Gujrat state fertilizers & chemical Ltd. For the next few trading session 165-162 would be the trend decider level for the bulls, sustaining above the same will lead to uptrend of up to 190," said Athwale.  

Further uptrend may also continue which could take the stock to 205, he says. "On the flip side, a dismissal of Rs 162 could possibly trigger quick short-term correction up to Rs155-151," he adds.    

Established in 1962, Gujarat State Fertilizers & Chemicals Limited is under the ownership of Ministry of Chemicals and Petro-Chemicals, Government of Gujarat. 

GSFC is the first company to manufacture DAP, Caprolactam and Melamine in India, claims the company.  

It has become the first company to manufacture Calcium Nitrate and Boronated Calcium Nitrate, it says. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)