Triveni, Renuka: Sugar stocks rebound, may further see up to 17% rise

Balrampur Chini Mills, Dwarikesh Sugar Industries, Ugar Sugar Works, Rana Sugars, Dhampur Sugar Mills and Shree Renuka Sugar overcome their significant peaks, with volumes exceeding daily 3-month high

Shares of sugar companies will be in spotlight on Thursday, as the resilient momentum can be seen being carried further after locking in upper circuits in the previous session. Sugar stocks may retrace to crucial supports, but the momentum seems to stay elevated, as per the technical charts.

Stocks such as Bajaj Hindusthan Sugar, Mawana Sugars, Rajshree Sugars & Chemicals, Sakthi Sugars and Simbhaoli Sugars locked in upper circuit on Wednesday. Barring E.I.D. Parry (India) and Triveni Engineering & Industries, all other listed sugar players closed over 5 per cent. 

Balrampur Chini Mills, Dwarikesh Sugar Industries, Ugar Sugar Works, Rana Sugars, Dhampur Sugar Mills and Shree Renuka Sugar succeeded in overcoming their significant peaks, with volumes exceeding daily 3-month highs.

On Thursday, Balrampur Chini Mills and Triveni Engineering & Industries gained close to a per cent, despite broader market witnessing a negative session. 

Here’s the technical outlook of sugar stocks:- 

Balrampur Chini Mills (BALRAMCHIN)

Likely target: Rs 440

Upside potential: 10%

A “Double Bottom” breakout may propel shares of Balrampur Chini Mills past major barriers of Rs 407 and Rs 412. When this occurs, the positive bias may further rally in the direction of Rs 440, its next major hurdle. 

The volumes on the breakout assisted the counter in breaking through the trendline hurdle set at Rs 390 level. The present momentum is resilient to any sell-off, and sustainability of stock price over Rs 390, its immediate support, could push bulls toward new higher highs. CLICK HERE FOR THE CHART

Shree Renuka Sugars Limited (RENUKA)

Likely target: Rs 56 and Rs 58

Upside potential:  9% to 12%

While there is a negative formation of a “Death Cross”, on the daily chart of Shree Renuka Sugars, the counter has not violated the breakdown mark placed at Rs 42 level. 

The recent sharp rebound, accompanied by robust volumes, indicates turnaround scenario for a short-term period. The stock may attempt to cross Rs 52.20-mark, its 200-DMA and if it succeeds to sustain over the same, the momentum could push stock price in the direction of Rs 56 and Rs 58. CLICK HERE FOR THE CHART

E.I.D. Parry (India) Ltd (EIDPARRY)

Likely target: Rs 569

Upside potential:   7%

A trendline breakout with stock price conquering the 50- day moving average (DMA) may lead to a short-term reversal in the counter. The stock is in a downtrend since November last year, with price losing close to 25 per cent. 

The reversal structure could reach 50 per cent of the retracement placed at Rs 569. The technical indicator, Relative Strength Index (RSI) has crossed 50 value, suggesting that the bullish strength is in the process of getting stronger. The support for the stock exists at Rs 520 and Rs 12 levels. CLICK HERE FOR THE CHART

Triveni Engineering & Industries Limited (TRIVENI)

Likely target: Rs 325 and Rs 340

Upside potential:   8% to 13%

Shares of Triveni Engineering & Industries face major obstacle at Rs 300, which is the trendline connecting previous crucial highs. Once this mark is overcome, the stock price may easily reach Rs 325 and Rs 340 levels.

The immediate support comes to Rs 283 and Rs 274 levels. The current daily chart reflects a strong pullback as the momentum has crossed hurdles of Rs 290 on decisive move. If the same momentum gets passed on, the stock may see addition of longs for a medium-term perspective. CLICK HERE FOR THE CHART

Dhampur Sugar Mills Limited (DHAMPURSUG)

Likely target: Rs 250 and Rs 265

Upside potential:   11% to 17%

This is the first time since May last year, shares of Dhampur sugar leaped over the 200-DMA. This up move, having possessed robust volumes, could see the stock forming a short-term bottom. 

A closing basis support of Rs 226, its 200-DMA, could assist stock in reaching Rs 250 and Rs 265 levels. Only a breach of Rs 200 on consecutive occasions may dampen the bullish bias, as per the daily chart. CLICK HERE FOR THE CHART