Rallis India shares surge 14% to hit 52-week high; what's next for this agri stock?

Shares of Rallis India Ltd on Monday soared 13.87 per cent to hit a one-year high of Rs 320.95. The stock finally settled 11.28 per cent higher at Rs 313.65. At this price, it has gained 24.09 per cent in the past five sessions.

The pesticides and agrochemicals' scrip heavy trading volume on BSE. Around 4.12 lakh shares changed hands today. The figure was higher than the two-week average volume of 61,000 shares. Turnover on the counter stood at Rs 12.80 crore, commanding a market capitalisation (m-cap) of Rs 6,099.52 crore.

Analysts largely remained positive on the counter due to expectations of an uplift in agricultural output.

Amar Ambani, executive director at YES Securities has recently said the La Nina phenomenon will boost agricultural output and soften food prices. A better agricultural outlook is usually considered as a positive sign for agri-related stocks.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Rallis has seen a tremendous surge backed by robust volumes leading to a consolidation breakout on daily charts. The stock now eyes for the Rs 330-340 zone in the short term period. While the support lies around Rs 298-290 subzone."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock looked strong on charts. It has potential to hit an upside target of Rs 345. Keep stop loss placed at Rs 308."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 290 and resistance at Rs 330. A decisive close above Rs 330 level may trigger a further upside towards Rs 340. The expected trading range will be between Rs 280 and Rs 340 for a month."

Rallis India is a subsidiary of Tata Chemicals and a part of the Tata Group. The company is a solutions provider for agri-inputs.