The stock of Chambal Fertilisers & Chemicals regained bullish momentum and advanced 5 per cent with above average volume on Tuesday and moved above a key level of ₹300. Investors with a short-term perspective can buy the stock at current levels. The stock took support at ₹211 in the months of March and April this year and continued to trend upwards. While trending up, the stock had emphatically breached a key hurdle at ₹260 in early May with heavy volume. Thereafter, key supports at ₹280 and ₹290 provided cushion for the stock. It trades well above the 21- and 50-day moving averages. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI features in the bullish zone. The short-term stance is bullish. The stock has a potential to trend upwards and reach the price targets of ₹323 and ₹329 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹304.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)