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The stock of Dhampur Sugar Mills surged 7 per cent accompanied by extraordinary volume breaking out of a flag pattern upper trend-line at ₹170. This rally provides a buying opportunity for the traders with a short term perspective can reach current levels.
Since registering a 52-week low at ₹65.8 in March 2020, the stock has been in an intermediate-term uptrend. Moreover, the medium-term trend has been up for the stock since it took support at ₹140 in early November 2020. After a sideways movement, the stock appears to have resumed the primary trend, which is up. Also, the stock has recently surpassed the 21- and 50-day moving averages and trades well above them.
The daily relative strength index has entered the bullish zone from the neutral region, and the weekly RSI has also entered this zone from the neutral region backing the uptrend. Further, the daily and the weekly price rate of change indicators have entered the positive territory implying buying interest. The short-term outlook is bullish for the stock. Targets are ₹186 and ₹190. Traders can buy the stock with a stop-loss at ₹174.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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