Can this multibagger sugar stock save your portfolio in a bearish market?
This multibagger sugar stocks has generated over 650 per cent returns to its investors
On Friday, the domestic markets remained under pressure amid poor global cues. Nifty cracked 265 points in the first hour, then rebounded about 90 points from lower levels to trade around 17400.
In this panic mode, one stock from the sugar sector is outperforming its peers & markets too.
The stock is Balrampur Chini Mills ltd (NSE Code – BALRAMCHIN), which is one of the largest integrated sugar manufacturers in India. It also has presence in allied business of distillery operations and cogeneration of power.
It rallied almost 650 per cent from the Covid lows (Rs 70) and made life time high of Rs.526. However, the stock lost momentum and then retraced around 50 per cent of its previous rally. Interestingly, it then bounced from this 50 per cent retracement which also is a support of previous swing low on weekly timeframe. It is currently trading around Rs.400.
This week, the stock rallied around 10 per cent with massive volumes to touch its breakout level of trend reversal price pattern on weekly charts. The 14-day RSI (67.51) is also in strong bullish zone and 5-13-26DMA has given positive crossover on daily charts, which shows momentum will be strong for the upcoming week. A close above RS.420 will indicate a start of fresh rally.
Swing traders and investors can add this stock to their watchlist.