Fine Organics continues to boom amid global supply shortage; gains another 7%!

The fertilizer stocks continue to enjoy a stellar run with most of the stocks rising over 25% in the past few days.

The stock of Fine Organics Industries has surged over 7% during the initial hours of Thursday’s trading session. The fertilizer stocks continue to enjoy a stellar run with most of the stocks rising over 25% in the past few days. The ongoing Ukraine-Russia war is likely to impact a global supply shortage with regard to fertilizers and chemicals. Moreover, a favourable monsoon in India is also expected to benefit the fertilizer and chemicals company. With this, FINEORG has zoomed over 35% in just five trading sessions.

The stock has hit a fresh all-time high today of Rs 5525 level and is in a continuous boom and has recorded huge volumes lately. The volumes happen to be greater than the 10-day, 30-day and 50-day average volume. As per the technical parameters, the stock is in a strong uptrend. The 14-period daily RSI (73.50) is in the super bullish zone and above its prior swing high. The ADX is pointing northwards and indicates an upside momentum along with the MACD histogram, which has risen over the last four days. Interestingly, the On Balance Volume (OBV) has risen sharply and is at its peak. The Elder Impulse System and as well KST maintain a buy signal. The stock is about 22% above its 20-DMA and about 47% above its 200-DMA, thus indicating strong bullish momentum.

On a YTD basis, the stock has generated about 50% returns and has outperformed most of its peers. Indeed, it has witnessed a strong surge recently. Traders have a good opportunity for momentum trading and the stock has the potential to gain another 5-10% in a short period. However, traders must also keep a strict stop loss, as the stock has had a good run-up recently and profit booking can be seen. As per the technical analysis, the stock is expected to do well in times to come.