Technical Analysis

Balrampur Chini Mills (₹149.95): Buy

Yoganand D BL Research Bureau | Updated on September 12, 2019 Published on September 12, 2019

The stock of Balrampur Chini Mills was on limelight on Wednesday. It jumped 12 per cent accompanied by extraordinary volume, breaking above the key resistances at ₹136 and ₹145. Also, the stock has breached its 50-day moving average and hovers well above the 50- and 200-day moving averages. This rally has reinforced the short-term uptrend that has been in place since the stock took support at ₹109 in mid-August.

Investors with a short-term horizon can buy the stock at current levels. With the recent rally, the stock appears to have resumed its intermediate-term uptrend that has been in place since it took support at ₹98 in January. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Similarly, the daily price rate of change indicator hovers in the positive terrain implying buying interest while the weekly indicator is likely to enter the positive terrain.

Overall, the short-term outlook is bullish for Balrampur Chini Mills. Short-term targets are ₹156 and ₹159. Traders can buy with a stop-loss at ₹146.

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

Published on September 12, 2019
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