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The stock of Andhra Sugars jumped 4 per cent accompanied by above average volume on Tuesday, breaking above a key resistance at ₹350. Investors with a short-term view can buy the stock at current levels.
The stock found support in the band between ₹290 and ₹300 in late January and again in February this year and began to trend upwards. Since then, the stock has been in a medium-term uptrend. After a corrective decline, the stock took support at ₹330 in early May and started to trend up. With the recent rally, the stock has conclusively breached the moving average compression (21-, 50- and 200-day moving averages) at ₹345.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has been moving upwards in the neutral region. Also, the daily price rate of change indicator has entered the positive terrain implying buying interest.
Overall, the short-term outlook is bullish for Andhra Sugars. The stock can continue to trend upwards. Targets are ₹375 and ₹382. Traders can buy the stock with a stop-loss at ₹352.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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