Technical Analysis – Balrampur Chini

Posted by admin

March 15, 2010

Balrampur Chini (Rs 93.2)

Sugar stocks were battered down last week on owing to a host of reasons including sharp drop in international sugar prices and the Government cracking down on hoarders.

Balrampur Chini was among the adversely affected stocks in this sector, down almost 17 per cent in the period.

This stock along with its peers in the sugar sector is in a strong decline since October 2009; the stock is down 44 per cent since then.

If we consider the retracement of the up-move in the chart since December 2008, 50 per cent retracement occurs at Rs 98 and 61.8 per cent retracement occurs at Rs 81. Investors can therefore continue to hold the stock as long as it trades above Rs 81.

Decline below this support will however imply that the stock is heading below Rs 50.

*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*

Technical Analysis