Hold onto fertiliser stocks: Sanjeev Agarwal

Sanjeev Agarwal, Director, Dynamix Research and Capital Management in an interview with ET Now talks about fertiliser stocks.

What is your take on some of these fertilizer counters? Decontrol when it took place in some of the oil marketing companies was the reason why we saw a lot of activity there. Similar is the case with the fertilizer counters. Do you think this will be a good time to enter into any of these counters or just stay out till more clarity comes on the decontrol bit?

Right now one should be holding these stocks and these stocks have already had a good run in the sense it is very difficult to enter right in the middle of the run now for the investor but the investors who are holding the stocks I definitely see a little more upside and the kind of strength market has been showing for the last 3 months I would not be surprised if these counters give 10% to 20% upside in the next 2 months.

After that it is going to be a little tricky because I see market somewhere market is already fundamentally I do not think there is much of the upside but these kind of rallies you cannot take fundamental into the question but ultimately it will come into the force.

So right now our target of this rally is somewhere around 6700 in Nifty by January first week. So keeping in the larger view I will expect like by December and or January first week one should be booking profits somewhere around 10% to 20% higher from current levels.