One sector besides Defence that could potentially show strong movements in the upcoming days is the Fertilizer sector in India. Fertilizers have been gaining attention, supported by favorable government policies, improved agricultural prospects, and recent sector rotation trends we discussed in our earlier research. Two stocks — Chambal Fertilizers and Paradeep Phosphates — have already seen significant rallies, indicating early traction within the sector. Given this lead, other fertilizer stocks may soon follow, providing fresh opportunities for investors.

Currently, the fundamentals for the Fertilizer sector remain robust. The Government of India continues to provide substantial support through subsidy allocations and policies aimed at reducing the reliance on imported fertilizers. With higher reservoir levels and expectations of a favorable monsoon season, the demand for fertilizers is poised to remain strong through the upcoming sowing season. Additionally, global raw material prices such as phosphoric acid and ammonia have stabilized after months of volatility, which should support margin expansion for Indian fertilizer companies. Companies with efficient distribution networks and diversified product lines are particularly well-positioned to capture this growth.

Among the stocks that investors should keep on their radar are Fertilizers & Chemicals Travancore Ltd (FACT) and Rashtriya Chemicals & Fertilizers Ltd (RCF). Technically, FACT witnessed a notable surge in volumes on 17th April and is currently forming a strong base after its sharp correction from the ₹1100 levels. Over the past week, the stock has consistently taken support at key moving averages — namely the EMA 40, EMA 44, and the 50-day moving average — indicating stability and potential for a reversal. The Relative Strength Index (RSI) stands at 59, suggesting a neutral stance with room for an upward move. A potential entry point for FACT could be considered above ₹750, with a stop-loss at ₹725 for swing and short-term trades, and ₹583 for long-term investors. Similarly, RCF displays a comparable technical structure. The stock, too, is finding reliable support at its EMA 40, EMA 44, and 50 DMA levels, with the RSI positioned around 59–60, aligning closely with FACT’s reading. However, to mitigate downside risk, we recommend initiating positions in RCF only on a breakout above ₹147. Stop-losses can be set at ₹136 for swing trades and ₹110 for long-term positions. On the fundamental side, RCF remains well-positioned with a wide distribution network, ongoing capacity expansions, and improved operational efficiencies, further strengthening its investment appeal within the fertilizer sector.

In conclusion, with supportive macro trends, favorable government policies, and strong technical setups, the Fertilizer sector appears well-positioned for continued outperformance. Investors looking to diversify their sectoral bets beyond Defence should actively monitor FACT and RCF for potential opportunities in the days ahead.