Top three fertilizer stocks to buy today, 21 April, recommended by Ankush Bajaj

The Indian stock market opened on a slightly negative note on 17 April, but quickly reversed course to deliver one of the strongest intraday rallies in recent weeks, transforming a mild start into one of the most powerful rallies seen in recent sessions.

After opening with a slight gap-down, markets witnessed consistent buying throughout the day, turning the mood decisively bullish by the closing bell.

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Powered by renewed global optimism and robust domestic cues, the Nifty 50 not only recovered but surged past the critical 23,800 mark, signalling a potential shift in market tone from cautious to aggressively bullish.

The top three fertilizer stocks to buy today, recommended by Ankush Bajaj:

Rashtriya Chemicals and Fertilizers Ltd (current price: ₹139.00)

• Why it’s recommended: The stock has given a classic double bottom pattern at the ₹112 level and later gave a breakout above ₹135, which also confirms a triangle pattern breakout. RSI and MACD are showing strong momentum, indicating bullish sentiment and continuation of the uptrend.
• Key metrics: Breakout level: ₹135 | RSI: Trending bullish | MACD: Positive crossover
• Technical analysis: A clean breakout backed by rising RSI and MACD crossover signals the continuation of the uptrend. The stock has the potential to reach its next resistance zone in the coming days.
• Risk factors: Fertilizer stocks may face volatility due to government policy changes, raw material cost variations, or subsidy announcements.
• Buy at: ₹139.00 | Target price: ₹155– ₹160 in 1–2 weeks | Stop loss: ₹132.00

National Fertilizers Ltd (current price: ₹85.40)

• Why it’s recommended: The stock has given falling wedge breakout (upper channel) from ₹83 levels. Also, RSI on hourly chart is trading above 60, showing strong momentum and potential for further upside.
• Key metrics: Breakout level: ₹83 | RSI: Above 60 | Pattern: Falling wedge breakout
• Technical analysis: A falling wedge breakout supported by bullish RSI suggests short-term bullish continuation. The stock is likely to move toward its next resistance zone in the coming sessions.
• Risk factors: Fertilizer stocks can be affected by government policies, subsidy delays, and raw material cost fluctuations.
• Buy at: ₹85.40 | Target price: ₹91.50– ₹93.00 in 1–2 weeks | Stop loss: ₹81.30

Fertilizers and Chemicals Travancore Ltd (current price: ₹760.85)

• Why it’s recommended: The stock has given a reversal Head and Shoulders breakout and also shown a falling wedge breakout on the daily chart. These dual bullish patterns indicate strong upside potential and a possible rally in the coming sessions.
• Key metrics: Breakout levels: Reversal H&S and Falling Wedge | Chart: Daily | Pattern confirmation: Strong
• Technical analysis: The combination of a reversal Head and Shoulders and a falling wedge breakout signals strong bullish sentiment. The setup is favourable for a short-term up move.
• Risk factors: Being in the fertilizer sector, the stock may react to government subsidy changes, seasonal demand shifts, and raw material price movements.
• Buy at: ₹760.85 | Target price: ₹800– ₹820 in 1–2 weeks | Stop loss: ₹734.00

Markets on 17 April: Intraday momentum ignites powerful close above 23,800

The BSE Sensex jumped 1.96%, adding 1,508.91 points to close at 78,553.20, while the NSE Nifty 50 surged 414.45 points or 2.21% to end at 23,851.65, marking one of the strongest intraday moves in recent sessions. The Nifty Bank led the charge, climbing 1,172.45 points or 2.21% to settle at 54,290.20, supported by strong credit growth expectations and favourable global bond yields.

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This intraday momentum indicates growing market confidence, as investors begin to shift their view from fear of resistance to chasing strength—a clear sign that the bulls are back in control.

Sectoral trends: Green dominates with broad participation

Today’s rally saw widespread sectoral support, with most indices posting healthy gains. The Finance Index led the charge with a 2.27% jump, followed closely by Banking at 2.21% and Infrastructure, which added 1.79%, supported by firm crude prices and strong macro stability from China.

Although the rally was broad-based, a few sectors witnessed marginal declines amid rotation. While the broader market remained upbeat, a few sectors showed mild underperformance. Metal closed down 0.26%, while Realty and FMCG slipped 0.51% and 0.58%, respectively—a reflection of sectoral rotation and short-term profit booking. These modest declines, however, were not enough to weigh down the overall bullish momentum of the session.

Stock-specific highlights: Wipro drags as broader market cheers

Of the 50 Nifty stocks, 48 closed in the green, reflecting the strength and conviction behind today's rally.

Top gainers included Eternal (up 4.29%), ICICI Bank (+3.71%) and Bharti Airtel (+3.65%), which benefited from strong institutional interest and supportive sectoral cues.

On the downside, Wipro was the lone deep laggard, falling 4.34% amid weak results and negative sentiment in the IT pack. Hero MotoCorp and JSW Steel also dipped slightly, ending the day down 0.27% and 0.22%, respectively.

Outlook: Nifty witnesses strong rally, eyes 24,010

The Nifty opened on a flat note but after some initial volatility, gained strength and traded with a positive bias throughout the day. It surged sharply to close higher by 414 points.

The index is now heading towards the 24,010 mark, which coincides with the 50% Fibonacci retracement level of the entire decline from 26,277 to 21,743. The daily momentum indicator has given a positive crossover —a bullish signal—suggesting that any minor pullbacks towards the 23,750–23,700 zone should be seen as buying opportunities.

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On the downside, immediate support is placed at 23,500 from a short-term perspective.

Other technical observations

-On the daily chart, the Nifty is trading above both the 20-day moving average (23,170) and the 40-day exponential moving average (23,052), reflecting underlying strength.

-The daily momentum indicator has turned bullish with a positive crossover.

-On the hourly chart, the index is trading above the 20-hour moving average (23,438) and the 40-hour exponential moving average (23,210).

-The hourly momentum indicator also shows a positive crossover.

-Market breadth remained strong, with 1,837 stocks advancing against 1,038 declines on NSE.

As discussed yesterday, the market continues to show bullish sentiment supported by both Open Interest (OI) data and technical indicators. We witnessed a strong rally today, and my spot-level target for the Nifty remains at 23,600.

Given that today is the weekly expiry, the current OI data indicates maximum call OI at 23,500 and maximum put OI at 23,300, suggesting a range-bound expiry between these levels.

However, if the Nifty manages to break above the 23,500 mark with volume support, we could see a sharp rally towards 23,600 or beyond.

Conclusion 

Watch for a breakout above 23,500 for further upside. Until then, expect consolidation within the 23,300–23,500 range.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.