Time to bet on sugar stocks? Dhampur, 4 others can rally up to 25%: charts

Should you bet on sugar stocks ahead of the new sugar season? Technical charts suggest that these 5 stocks can potentially rally up to 25% from here.

Shares of sugar companies have witnessed a mixed trend thus far in the financial year 2025-26 on the stock exchanges even as the NSE benchmark Nifty 50 and the broader Nifty 500 indices rallying up to 9 per cent each.  Among individual stocks - EID Parry and Zuari Industries have zoomed over 34 per cent each; while Dhampur Bio Organics, Rana Sugars, Dhampur Sugar Mills, Shree Renuka Sugars and Dwarikesh Sugar Industries surged 13 - 23 per cent.  On the flip side, Prudential Sugar Corporation stock has tumbled 26 per cent. Triveni Engineering & Industries, Balrampur Chini Mills, KCP Sugar, Magadh Sugar, Ponni Sugars and The Ugar Sugar Works shed 4 - 11 per cent each.  However, with the new sugar season starting in a week's time, and optimism over a surplus growth the mood within the industry seems upbeat. Sugar season for 2025-26 will start from October till the end of next September.  According to estimates, gross sugar output in the 2025-26 season is projected to be 34.9 million tonnes - up 18 per cent from current year's 29.5 million tonnes output. READ MORE 

Outlook on sugar stocks

  Given this background, here's a trading strategy in 5 prominent sugar stocks based on the existing chart patterns. 

Dalmia Bharat Sugar and Industries

Current Price: ₹367  Likely Target: ₹440  Upside Potential: 19.9%  Support: ₹357; ₹347  Resistance: ₹375; ₹392; ₹418  Dalmia Bharat Sugar stock is likely to trade with a cautiously optimistic bias as long as the stock holds above ₹357; below which support for the stock can be anticipated around ₹347 levels. On the upside, the stock needs to clear the key hurdle around ₹392 levels, for a likely rally towards ₹440. The stock is likely to face interim resistance around ₹375 and ₹418 levels. 

 

 

 

Dhampur Sugar Mills

Current Price: ₹140  Likely Target: ₹160  Upside Potential: 14.3%  Support: ₹136; ₹132  Resistance: ₹142.40; ₹148  Dhampur Sugar Mills is seen testing the 200-Day Moving Average (200-DMA) hurdle, which stands at ₹142.40, in recent trading sessions. The stock has been languishing below this long-term moving average since mid-January 2024, and has shed 47 per cent in this period. 

 

  Earlier this month, the Dhampur Sugar stock witnessed a gap-up trade, and since has been trading with a favourable bias on the daily chart. The short-term bias is likely to remain cautiously positive as long as the stock holds above ₹132 levels, with near support seen at ₹136.  On the upside, break and sustained trade above the 200-DMA, can trigger a pullback rally towards ₹160-odd levels, with interim resistance likely around ₹148 levels. 

Kothari Sugars and Chemicals

Current Price: ₹31.90  Likely Target: ₹40  Upside Potential: 25.4%  Support: ₹30.20; ₹29.50; ₹28.60  Resistance: ₹35.30; ₹37.35  Kothari Sugars is seen trading close to its long-term support - the 100-Month Moving Average (100-MMA) which stands at ₹28.60 levels - the stock has consistently quoted above this average since April 2020. Near support for the stock is visible at ₹30.20 and ₹29.50 levels. 

 

  On the upside, the stock needs to conquer the 100-DMA resistance, which stands at ₹35.20 followed by the 200-DMA hurdle at ₹37.35 levels; for a likely rally towards ₹40-odd levels. 

Ponni Sugars (Erode)

Current Price: ₹288  Likely Target: ₹345  Upside Potential: 19.8%  Support: ₹285; ₹270  Resistance: ₹315; ₹330  Ponni Sugars has witnessed a massive 51.5 per cent fall from its all-time high of ₹593 to present in just 14 months. The stock is trading in a fairly oversold zone on the long-term chart; thus consolidation or pullback at the counter cannot be ruled out. 

 

  At present, the stock seems to be seeking support around the lower-end of the Bollinger Bands on the daily chart around ₹285 levels; below which the recent lows around ₹270 may provide support for the stock. On the upside, the stock can pullback to ₹315 levels; above which a recovery towards ₹345 seems likely, with interim resistance likely around ₹330. 

Uttam Sugar Mills

Current Price: ₹259  Likely Target: ₹312  Upside Potential: 20.5%  Support: ₹255; ₹250  Resistance: ₹271; ₹281; ₹291  Uttam Sugar stock is seen consolidating around its 200-DMA, which stands at ₹260, for more than a month now. The short-term bias at the counter is likely to remain favourable as long as the stock sustains above ₹250, with interim support likely around ₹255 levels. On the upside, the stock may revisit its recent highs around ₹312 levels, with interim resistance seen at ₹271, ₹281 and ₹291 levels.