Top gainers BASF & Chambal Fertilisers trade at record highs as other fertiliser stocks join the party!

Fertiliser stocks were seen gaining on a day when profit booking was prevalent because the Cabinet approved the subsidy proposal.

With Sensex and Nifty dominating the market moods after witnessing broad based profit booking, there were few stocks that were trending up with huge unusual volumes. BASF and Chambal Fertilizers made all-time highs for themselves on Wednesday by breaking out from important resistance levels. These two stocks were also amongst the top gainers on Wednesday. BASF gained nearly 9 per cent with a spurt in volumes by more than 5.98 times while Chambal Fertilisers gained nearly 7 per cent with a spurt in volume by more than 3.84 times. 

Fertiliser stocks have shown good momentum on bourses on Wednesday with the likes of Madras Fertiliser trending up by 6.17 per cent, RCF up by 3.89 per cent, Deepak Fertilisers gaining 2.30 per cent, National Fertilisers strengthening by 3.20 per cent and Coromandel International inching up by more than 1 per cent. Nagarjuna Fertilisers was seen locked in upper circuit after gaining 4.92 per cent. 

Fertiliser stocks were seen gaining on a day when profit booking was prevalent because the Cabinet approved the subsidy proposal. Looking at the breakout in several of the fertiliser stocks it looks like the party may continue for most of the fertiliser stocks in coming trading sessions. Chambal fertilisers with a PE of 7.75 can be expected to get rerated even as the technicals for the stock give an advantage to the bulls.