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Investor with a short-term horizon can buy the stock of Uttam Sugar Mills at current levels. The stock jumped 9 per cent accompanied with good volume on Monday, resuming the medium-term uptrend that has been in place since recording a 52-week low at ₹61.5 in July this year. Both the medium- as well as the short-term trends are up for the stock. The recent upmove has emphatically breached the key resistances at ₹100 and ₹120.
After a minor corrective decline, the stock found support at ₹140 in late October and has resumed its uptrend. The stock trades well above its 50- and 200-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continue to feature in the bullish zone. Both the daily and weekly price rate of change indicators hover in the positive territory implying buying interest.
The short-term forecast is bullish for the stock. It can extend its uptrend and reach the price targets of ₹162 and ₹165 in the ensuing trading session. Traders can buy the stock with a stop-loss at ₹151.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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