Chambal Fertilizers Ltd - Analysis Technical Analysis of Chambal Fertilizers Ltd Chart:
Previous Decline:
The chart displays a 47.26% drop (around ₹229.55) during 2022–2023.
This significant price correction was followed by a period of consolidation and recovery, a common sign that the market absorbed the price dip and resumed positive momentum.
Recovery and Current Uptrend:
Following the decline, the stock has rebounded and gained approximately 44.67% (₹216.40) as it approached the ₹520 level.
The current uptrend is visible as the stock has established higher highs and higher lows, indicating a sustained bullish momentum.
Consolidation Near ₹500–₹525:
The stock price is currently consolidating in the ₹500–₹525 range.
This consolidation is likely a phase where the market is deciding whether to break upwards or face resistance and possibly correct again. A breakout above ₹525 with strong volume could indicate further bullish movement.
Volume Trends (CVD):
The Cumulative Volume Delta (CVD) shows both buying and selling pressures, but a substantial amount of volume has supported the uptrend.
This suggests a strong interest from both buyers and sellers, but buying pressure is likely leading as indicated by the price rise.
Future Potential:
The stock has a clear target of ₹700, as projected from the chart. A move towards this level would represent a significant upside potential from the current price.
If it breaks past ₹525, the next immediate target could be around ₹650–₹700.
Key Support Levels:
Immediate support lies around the ₹500–₹480 level. A breakdown below this range could suggest the start of a correction, with the next support likely around the ₹450 level.
Conclusion:
Bullish Momentum: Chambal Fertilizers is currently in an uptrend with potential to reach ₹650-₹700 if it breaks above the ₹525 resistance level.
Consolidation Phase: The ongoing consolidation near ₹500 indicates potential accumulation, with buyers positioning themselves for a breakout.
Watch for Breakout: A confirmed breakout above ₹525 could provide a buying opportunity, whereas failure to break out may lead to consolidation or a mild correction.
