Somethings buzzing in sugar stocks, given the formation of BULLISH PENNANT in few of the sugar stocks, seems something sweet is in the offering soon.
However hold on your Horses, before jumping to trade it. All the sugar stocks viz. Dhampur, Dalmia & Uttam have formed Bullish Pennant , however we need to wait for a confirmation, before Buying the Sweetner.
DALMIASUG Buy at 106-107
Risk 11.50% & Reward 30%
RR Ratio 1 : 2.63
Ascending Triangle - Continuation Pattern
With its “flat-topped” shape, the ascending triangle indicates that buyers are more aggressive than sellers. The ascending triangle forms because of a supply of shares available at a fixed price. When the supply depletes,...
DALMIASUG:106 Technically weak now, huge volume but doesn’t look like a any accumulation here, it may find support around 92.Fundamentals are improving, like, it improved sales and profit. Debt is reducing.
But it will have all the seasonal distress like all in sugar' industries.
Market Cap.: ₹ 871.02 Cr.
Book Value: ₹ 96.75
The stock is testing the 365 day exponential moving average line. One can take a positional long trade once the 145 level is broken targets are as per the fibonacci retracement the final target is 175. Fundamentally strong stock.
Price action could take bullish reversal owing to candlestick as seen from core support levels after prolonged downtrend as seen earlier
RSI also seen to be taking rebound from "oversold" zone
Aiming for short term for Target 1 and 2 thereon after entry confirmation and thereafter, resistance (C) levels
Rest in charts..
Scrip can take reversal and aim towards 52-week highs if bullish momentum continues as happened in the past post company posting good quarterly results however, subject to Nifty not showing major corrections