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These 5 sugar stocks can jump up to 25% in coming sessions; time to buy?

Topics Sugar prices | Sugar Stocks | PMO

A letter by the Indian Sugar Mills Association (ISMA) to the Prime Minister's Office requesting an increase in the minimum price of sugar sparked a rally in shares of Balrampur Chini Mills, Dhampur Sugar Mills Limited and Avadh Sugar and Energy. Any further development regards to the increase in sugar price can push the stocks higher in a short span of time.

Here is their outlook on tech charts over the coming sessions:

Likely target: Rs 400
Upside potential: 11%

The stock is trading on the higher side of the bullish trend and continues to scale upper levels on the daily and weekly charts. A short-term rally towards Rs 400 is likely. Further, the medium-term trend is also intact above the weekly support of Rs 320 levels. However, the stock may enter a weak sentiment if it breaks the 50-days moving averages (DMA), currently placed at Rs 348.90, on the downside. CLICK HERE FOR THE CHART

Avadh Sugar & Energy Limited  (AVADHSUGAR)
Likely target: Rs 500 and 520
Upside potential: 8% to 13%

If the stock is able to hold two technical levels-- the 50-DMA placed at Rs 449.50 and a "flag pattern” breakout mark of Rs 400 -- then the positive bias may see a recovery towards immediate resistance of Rs 500 and 520 levels. Moreover, the Relative Strength Index (RSI) has made a positive crossover. However, the Moving Average Convergence Divergence (MACD) has fallen below the zero line, indicating a mixed outlook. CLICK HERE FOR THE CHART

Dhampur Sugar Mills Limited (DHAMPURSUG)
Likely target: Rs 344
Upside potential: 8.50%

After the breach of 50-DMA at Rs 346 and sentimental support of Rs 300 mark, the stock rebounded and took support around 100-DMA, placed at Rs 301 levels. As long as this support is maintained, the upside bias may see a bounce towards Rs 344, which is the current 50-DMA level, as per the daily charts. Moreover, the RSI has emerged from the oversold territory, signalling a positive strength over coming sessions. CLICK HERE FOR THE CHART

Shree Renuka Sugars Limited (RENUKA)
Likely target: Rs 29 and Rs 32
Upside potential: 14% to 25%

The medium to long term outlook is extremely positive, with the share price expected to double. This is on account of the “Golden Cross” breakout on the weekly charts. The short-term trend, however, suggests sideways to minor weakness with support falling at Rs 22.40 and Rs 16.50 levels, its 100-DMA and 200-DMA, respectively. The recent fall did not see aggravated volumes, indicating weaker strength in the negative bias. Any reversal may see a rally towards Rs 29 and Rs 32 levels. CLICK HERE FOR THE CHART

Likely target: Rs 198
Upside potential: 8%

The stock has formed a pattern similar to “Head and Shoulder”, with a breakdown (neckline) level at Rs 155, as per the daily chart. If the stock manages to trade above this level, a rally towards the breakout mark of Rs 198 seems possible. Further, if the “Double Bottom” pattern on RSI gets materialised, then the positive strength may add more momentum in the upward direction, as per the daily chart. CLICK HERE FOR THE CHART

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