Investors with a short-term horizon can buy the stock of Dhampur Sugar Mills at current levels. The stock has been in an intermediate-term uptrend, since recording a multi-year low at ₹65.8 in March 2020. Since the stock took support at ₹140 in early November 2020, it has been in a medium-term uptrend.

Last week, the stock took support at ₹172 and bounced up, gaining bullish momentum. Sustaining the momentum, the stock advanced 4.8 per cent with above average volumes on Thursday, breaking above the key immediate resistance at around ₹190. Also, the stock has surpassed the 21- and 50-day moving averages and trades well above these levels.

The daily relative strength index has entered the bullish zone and the weekly RSI continues to feature in the bullish zone.

A rally above the current hurdle at ₹200 can strengthen the bullish momentum and take the stock higher to ₹207 and then to ₹211 in the short term. Traders with a short-term perspective can buy with a stop-loss at ₹194.

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

Related Topics