Technical Observations

The Agri related stocks are witnessing strong momentum in the last few weeks. We remain positive on RCF as it has rebounded after a higher base formation at the 50 days EMA (currently at | 73) and has recently registered a breakout above the triangular consolidation of the last two months signalling strength and offers fresh entry opportunity

The stock is expected to continue with its current positive momentum and head towards our target of | 90 levels as it is the 80% retracement of the recent decline (| 100-69) placed at | 93 levels

It has already taken 10 weeks to retrace just 61.8% of the preceding two weeks rally (| 53- 100) A slower retracement signals robust price structure and a higher base formation

The daily MACD is in up trend and is seen sustaining above its nine periods average thus validates positive bias

Buy Rashtriya Chemicals and Fertilizers Ltd. @ 80.00-82.00 TGT 90.00 SL 76.50

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