DSIJ Mindshare

Sugar stocks across the board witnessed sharp correction in the past few months. The major reason was substantial drop in sugar prices domestically and globally too. Government’s efforts are not showing signs of recovery in the near-term.

Automobile giant Tata Motors shot up by over 2 per cent in Friday’s intraday trade session on the back of the company’s fund raise plans. The company announced on Thursday evening that it has proposed to raise funds worth USD 250-500 million via external commercial borrowing.

PSU Bank index posted a Doji and bounced back from 50 per cent retracement of the prior upward rally from 2,645 to 3,055. Thereafter, it has given three consecutive daily upbeats till date. Volumes are rising and 14-period RSI is nearing 60 which suggests momentum.

When the entire market is in doldrums with weakness prevailing in the benchmark indices, Pharma sector has escalated by 2.9 per cent. We hold 8555-8600 followed by 8650 as the resistances. In case its a pullback we hold 8330-8215 as the supports.