- Why it’s recommended: Balrampur Chini Mills is one of India’s largest integrated sugar producers, with operations across sugar, ethanol, industrial alcohol, co-generated power, and agricultural fertilizers. Despite recent volatility, the stock has been making a steady upward recovery. A brief consolidation phase suggests the market has fully absorbed weaker Q1 results, breathing new life into the price action. Resilient reactions off the Tenkan Sen and Kijun Sen lines at higher levels signal sustained bullish momentum. A strong long-bodied green candle would serve as the primary confirmation signal to enter. Go long.
- Key metrics:
- P/E Ratio: 40.44
- 52-week high: ₹664.80
- Volume: 1.4M
- Technical analysis: Support at ₹600, resistance at ₹750.
- Risk factors: Cane pricing structures, ethanol allocations, global glut risk and cash flow constraints.
- Buy : above ₹658.
- Stop loss: ₹625.
- Target price: ₹725.
Stock market update
Indian equities delivered a mixed close on Monday, August 17, as supportive global cues clashed with domestic headwinds. Following a volatile session driven by derivatives expiry, the Nifty 50 slipped 0.12% to 24,366.40, while the Sensex edged up 0.18% to 78,220.15. Weighing on market sentiment were elevated crude prices near $88 per barrel, which fueled renewed fears around inflation and fiscal health.
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