Analysts said Nifty may witness further bounce if it manages to hold above this level. Can the index manage to take out the 15,300 level this week? Or will we see some more consolidation?
Shree Renuka Sugars ended locked in the 10 per cent upper circuit.
“These stocks are gaining because sugar prices have gone up in the international market and because of government’s ethanol policies. Ethanol mixing in petrol was about 5-6 per cent and government has given a mandate to increase it to 20 per cent by 2025,” said independent advisor Ambareesh Baliga.
“Now, ethanol can be manufactured directly from sugar. This will ensure sugar inventory is not too high,” said Baliga.
Stocks such as Avadh Sugar, Uttam Sugar, Triveni Engineering, Dwarikesh Sugar, Shree Renuka and Bajaj Hindusthan have gained 40-87 per cent in the last one month. All the sugar companies are in the green for 2021 calendar year, gaining 10-55 per cent.
Sugar stocks on a sweet ride, but low volume turns analysts cautious
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Sugar stocks have been seeing a rally of their lifetime, as rising international prices and increased demand for ethanol from oil market companies (OMCs) have raised their outlook.
Sugar stocks have surged up to 90%.
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NEW DELHI: Even as rising Covid-19 cases have tamed the speed of the equity bulls, there are some pockets in the market that have remained virtually unaffected. Stocks of often-overlooked sugar makers are one such pack.
Sugar stocks have been seeing a rally of their lifetime, as rising international prices and increased demand for ethanol from oil market companies (OMCs) have raised their outlook. In the last one month, these stocks have surged up to 90 per cent.
Sugar stocks in sweet spot, as shares hit roof
May 03, 2021
Brazil’s loss is India’s gains, say analysts
Shares of sugar prices surged on Monday, as analysts expect the commodity price to go up following Brazil woes. According to reports, sugar output for April in Brazil was down 35 per cent year-on-year. Analysts said Brazi’s loss could be India’s gain.
A Reuters report quoting industry group Unica said: “Brazil s center-south sugar output was only 624,000 tonnes in the first half of April versus 971,000 tonnes in a similar period last year. Cane crush was seen at 15.6 million tonnes, 30 per cent less than in 2020.”
Ahead of Market: 12 things that will decide stock action on Friday
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Aditya Agarwala of YES Securities said, “The index has taken support at 14,300 level. The lower end of the broad trading range, which also happens to be the trendline support.”
Mazhar Mohammad of Chartviewindia.in said that a smart recovery from day s low of 14,353 levels depicted a Hammer-like formation, as the bulls tried to chalk out a near-term bottom around 14,300 level.
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NEW DELHI: Nifty had a gap-up opening on Thursday and traded in a volatile range before making a 230-points rebound to close higher for the second consecutive day. The headline index formed a hammer-like pattern on the daily chart.