11/01/2022
Sector- Sugar
Market Capitalization- Rs. 8567 Cr. One of the industry leaders
The stock had its part of the rally from 180 to 350, then went into a consolidation. With the last correction the stock went down to touch lows of 300, at this juncture surprisingly the stock had relative strength, with RSI making higher lows when the stock was in consolidation showing a RSI positive divergence.
Looking at the price action, three white soldiers' pattern was formed, along with the divergence of RSI and a MACD crossover at the same time when RSI showed the signal
EMA 10 day crossed the 50- and 100-day EMA too indicating more strength. The resistance of 375 was crossed seamlessly with good volumes.
The weekly charts are well placed indicating there is more juice in the run.
Buy- 344
Target 1- 375
Target 2- 412, using Fibonacci extensions
Stop loss- 334
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