The sugar industry is again on an upward roll as a major reason is that Indian cabinet has approved a plan to spend up to Rs 1,054 crore to pay interest on loans to the sugar industry for a year, in a bid to help sugar mills clear their dues to farmers.
Other news which is in favour of sugar stocks is that we are seeing a hope emerging that this sector may be decontrolled and we may see a higher ethanol supply at better prices ( oil ministry indicated that oil marketing companies will issue supply orders for 860 million litres of ethanol at the interim price of Rs27/litre. Accordingly, sugar mills have committed to supplying one billion litres of ethanol to OMCs for blending with petrol), and a narrowing global surplus (Brazil's agriculture ministry has made a declaration that sugar output in Brazil which is the world's biggest producer, will rise less than previously forecast this year as dry weather may hurt their crops).
Thus we have picked this sugar stock which is Dhampur Sugar as it has given a breakout from a rectangle above 215 and it has higher reliability. Have a look at the stock chart here as this stock if sustain 215 levels can target 250,283 & higher levels as stock is showing an ascending channel.
We feel proud in stating the fact that our clients generally get into the stock when the breakout occurs and they are well ahead of the curve but the bus has just started moving and you can equally get benefitted by riding short term stocks as it gives good returns as time always acts in favour of an investor. Having lesser money in the trading account than consider going with the intraday trading tip as it gets you to profit daily as in intraday margin always come handy.
Other news which is in favour of sugar stocks is that we are seeing a hope emerging that this sector may be decontrolled and we may see a higher ethanol supply at better prices ( oil ministry indicated that oil marketing companies will issue supply orders for 860 million litres of ethanol at the interim price of Rs27/litre. Accordingly, sugar mills have committed to supplying one billion litres of ethanol to OMCs for blending with petrol), and a narrowing global surplus (Brazil's agriculture ministry has made a declaration that sugar output in Brazil which is the world's biggest producer, will rise less than previously forecast this year as dry weather may hurt their crops).
Thus we have picked this sugar stock which is Dhampur Sugar as it has given a breakout from a rectangle above 215 and it has higher reliability. Have a look at the stock chart here as this stock if sustain 215 levels can target 250,283 & higher levels as stock is showing an ascending channel.
We feel proud in stating the fact that our clients generally get into the stock when the breakout occurs and they are well ahead of the curve but the bus has just started moving and you can equally get benefitted by riding short term stocks as it gives good returns as time always acts in favour of an investor. Having lesser money in the trading account than consider going with the intraday trading tip as it gets you to profit daily as in intraday margin always come handy.
