Technical Analysis

Dhampur Sugar Mills (₹142): Buy

Yoganand D BL Reserach Bureau | Updated on October 09, 2018 Published on October 09, 2018

Investors with a short-term perspective can buy the stock of Dhampur Sugar Mills at current levels as the stock has rediscovered its bullish momentum.

On Tuesday, the stock jumped 12.4 per cent accompanied with above average volume, breaching above the 200-day moving average.

After a near-term corrective decline in late September, the stock found support at ₹100 which is also a key psychological support level. Subsequently, the stock resumed its short-term uptrend that has been in place since early September.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is likely to enter the bullish zone from the neutral region. The daily price rate of change indicator has entered the positive territory implying buying interest. The stock trades well above its 21- and 50-day moving averages.

The short-term outlook is bullish for the stock. It can extend the up-move and reach the price targets of ₹148 and ₹151 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹139.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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