Chambal a good pick in the fertiliser space: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com, in a chat with ET Now talks about the fertiliser stocks.

What is your take on the fertiliser pack?

This is looking like an intermediate uptrend. It is only we have an intraday decline today. The intermediate trend is not confirmed but it is looking like there is one. So at the moment, I am treating this just as a decent enough to trade intraday but the medium term trend, that is the intermediate trend, could very well be up. Now if that trend is up, we are going to find stocks doing well today and that is happening with petroleum, fertilisers.

So they are flavour of the day and this is a good sign that there are segments of the market going up in spite of the indices falling quite a bit. The signs are still pointing towards the existence of an intermediate uptrend.

Would you buy fertiliser stocks at current levels?

Yes, you could take up a Chambal, keep a stop loss of 83. It is a very close stop loss, fairly over 1%. So these stocks are going up in a falling market. Therefore, you have to respect them. They could very well turn out to be decent enough trades.