Technical Analysis

Dhampur Sugar Mills (₹174): Buy

Yoganand D BL Research Bureau | Updated on February 05, 2019 Published on February 05, 2019

Investors with a short-term perspective can buy the stock of Dhampur Sugar Mills at current levels. The stock has been on an intermediate-term uptrend since taking support at ₹72 in mid-July 2018. Following a short-term corrective decline, the stock found support at ₹157 in late January. Key support in the band between ₹155 and ₹157 is cushioning the stock.

Over the last one week, the stock has been on a near-term upmove. On Tuesday, the stock jumped 5.5 per cent accompanied with above average volume, decisively breaching its 21- and 50-day moving averages. There has been an increase in daily volume over the past one week. The daily relative strength index is on the brink of entering the bullish zone and the weekly RSI has re-entered the bullish zone from the neutral region. The daily and weekly price rate of change indicators feature in the positive territory implying buying interest.

Overall, the short-term outlook for the stock of Dhampur Sugar Mills is bullish. It can continue to trend upwards and reach the price target of ₹181 and ₹184 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹170.5.

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

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