Today, sugar stocks remained under the spotlight as investors flee to buy shares of sugar companies. The sector itself is going through a lot of turmoil which was amplified after the government’s recent measures to curb sugar exports. However, now it is rumored that the government might ease the export restrictions a bit and allow exporters to ship at least 5 million tonnes of sugar ahead of the sugar season.
Whatever may be the case, there’s no denying that investors are now flocking to make a bet in the sugar space. Here are 3 stocks that are looking good from a technical analysis point of view.
Balrampur Chini Mills Limited
Balrampur Chini Mills Ltd. (NS:) is a INR 7,388 crores big integrated sugar manufacturing company and is also in the business of making ethanol. The share price of Balrampur Chini surged 3.27% to INR 373.95 in today’s session on the back of a volume of 5.17 million shares. The stock has been rising after making a bullish divergence on the daily chart which indicates that the stock might have made a bottom, at least for the short term.
Image Description: Daily chart of Balrampur Chini with RSI at the bottom
Image Source: Investing.com
From the last few sessions, there has been a consistent up move being witnessed in the stock and the rally could continue to the nearest resistance of around INR 405 in the near future. A fall below INR 330 might result in the next leg of a downtrend.
Shree Renuka Sugars Limited
Shree Renuka Sugars Ltd. (NS:) is another sugar manufacturer with a market capitalization of INR 10,206 crores. The stock surged 7.72% to INR 51.65 in today’s session, clocking a volume of around 52.5 million shares. This makes it a more promising candidate for a further up move as the volume is the highest in over 4 months.
Image Description: Daily chart of Shree Renuka Sugars with volume bars at the bottom
Image Source: Investing.com
The stock also broke a falling trendline resistance on the daily chart with ease. As the up move has just accelerated, a rally to the 52-week high of INR 63.2 could come in the next few weeks. On the downside, a fall below the support of INR 44 might create some panic for the bulls.
Triveni Engineering and Industries Limited
The last stock on the list and the smallest one is Triveni Engineering and Industries Ltd (NS:) which has a market capitalization of INR 5,815 crores. Today, the stock rose 4.09% to INR 250.4, supported by a volume of 1.61 million shares. During the rally, the stock comfortably surged past its previous swing high of INR 246 which confirmed the uptrend.
Image Description: Daily chart of Triveni Engineering and Industries with volume bars at the bottom
Image Source: Investing.com
There is some resistance around INR 266 – INR 268 which can trouble the stock to rise past it, however, a move to this resistance level seems like a piece of cake for the stock, especially considering the sector-wide demand in sugar companies.
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