Fertilizer stocks rallied sharply in today’s session, with The Fertilisers and Chemicals Travancore Ltd. (FACT) and Rashtriya Chemicals & Fertilizers Ltd. (RCF) showing strong technical breakouts backed by high volumes and positive policy cues.

The Fertilisers and Chemicals Travancore Ltd. (CMP- 1015, Stop Loss – ₹920)  soared by 12%, closing at ₹1,015, breaking out of a bullish flag pattern. The breakout is supported by substantial volumes, and the stock is now heading toward its next key resistance level at ₹1,030. 

Source: NSE

The technical structure suggests that if momentum sustains, the stock could continue its upward trend in the near term.

FACT is involved in the manufacturing and marketing of fertilizers, petrochemicals, and offers engineering consultancy and industrial equipment services.

Rashtriya Chemicals & Fertilizers Ltd. (CMP- ₹160, Stop Loss – ₹145) jumped 7%, breaking out from a short consolidation base. The stock has consistently used its 21-day moving average as support, reaffirming the strength of its ongoing trend. 

Source: NSE

The rally comes amid the Indian government’s recent announcement of a 41% hike in phosphorus subsidy (₹43.6/kg) and a 48% increase in sulphur subsidy (₹2.61/kg) for the Kharif 2025 season. These measures are expected to offset rising input costs, enhance profit margins, and support the continued production of critical fertilizers like DAP and NPK.

RCF is a major player in fertilizer and industrial chemical production, catering to both domestic and international markets.

Both companies are expected to benefit from favorable macro trends, government support, and improving technical setups.

Note: Charts and prices are as of 12 PM.

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