Dwarikesh Sugar Industries Ltd, part of BSE Small cap index rose 260 per cent in the last year compared to 14 per cent rise seen in the Nifty50 and about 50 per cent jump seen in the S&P BSE Small cap index in the same period.

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The sugar stock with a market capitalization of more than Rs 1800 cr hit a 52-week high of Rs 104 on 7 February.

Investors who are looking to add some sweetness to their portfolio can look at buying the stock now or on dips for a possible target of 140-160 which translates into an upside of 38-58% in the next 6 months, suggest experts.

After a strong rally in 2021, the stock has been on buyers’ radar in 2022 as well. It rose nearly 6 per cent in a week and more than 15 per cent in over a month.

The recent price action led to a range breakout along with strong volumes on the weekly charts. Investors can look at buying the stock on dips around Rs 94-88, suggest experts.

The stock was trading in a range since July on the weekly charts. The stock finally gave a breakout back in January and the momentum continued in February as well which helped the stock to climb Rs 100.  

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Technically, the stock is trading above most of the short- and long-term moving averages such as 30,50,100 and 200-Days Moving Average (DMA) which is a positive sign for the bulls.

“The stock price started its up move from 13.30 (March 20). It made a high of 38.70 in March 2021. The uptrend, continued and the stock traded above all averages & made a high of 84 (July 21),” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.

“The super trend indicator is continuously in positive mode from August 2020. The stock traded in a range of (60-85) from July 21 to December 21,” he said. Recently, the stock gave range breakouts and made a high of 102.3 crossing all previous highs, accompanied by volumes.