Sunday, December 17, 2017

Opportunities in Dwarikesh Sugar

Dwarikesh Sugar - Short Analysis

We have seen a lackluster performance from sugar sector in recent past. At least currently it is not moving the way it was during June 17 to Oct 17.
The sector as a whole and the stock (Dwarikesh) corrected substantially in last 2 months.
Question is whether the opportunities are over in this stock or we should treat this correction as entry opportunity.
You can see the weekly chart of Dwarikesh Sugar below. On this chart you can see that the stock is falling ( correcting) since beginning of Nov 17 when it was trading around 79. It is still not giving the symptoms of recovery. Now the stock is trading near 53. This is a fall of more than 30% from the high.
You can see a range named 'Accumulation Zone' marked on chart. This range is a support area. One can expect buying to start in this zone. One can start buying Dwarikesh Sugar when it trades between 48 and 39.
Place the stop just below 39 and exit, if it falls below it.
The stock can see an upside of more than 40% from the recommended buying level.