Sugary syrup

(Note:Charts in order from Bottom to top, Bajaj Hindustan,Balrampur Chinni,Dhampur sugar,Rajshree Sugar)
Sensex and Nifty scaled new heights on Friday ( 10 th November).Most index stocks were defying the laws of gravity.But, the mood in the sugar camp was depressing.The government has not yet made up its mind on reviewing the ban on sugar.Incidentally,Sugar has the heaviest weightage among all commodity prices in the WPI( Wholesale Price Index).
The FM,Chiddus policy is simple.Keep sugar prices down and with that you bring down the infaltion figures. The result has been that many of sugar stocks are in a "Will-it..Will-it-Not" situation.Technically speaking, the scrips are in a make or break situation.I have reviewed the following scrips and would recommend it only for the traders who have an appetite for risk.
First things first.My universe is limited to Top 200 stocks in NSE/BSE.Hence, only Bajaj Hindustan,its smaller cousin,Balrampur Chinni,Dhampur Sugar fall into the ambit.Rajshree Sugars made it to the league because of the increased confidence by its Chairman,Shree Rajsree Pathy .

Bajaj Hindustan(CMP:289.5) :
The script has bright potential if and only if it clears the 346 level comfortably.The script had earlier rosen from 195 in Nov 2005 to 568 in April 2006 and has now been dumped at its current level.At this trading zone,the script has made atleast 3 unsuccessful attempts and reversed at this resistance level(346).Curiously , the next support was perched at 300 which too has now been broken by fridays movement. We now face the risk of hitting the next support at 270 nd then at 250.BTW,250 is a strong support and one can safely make fresh investment at 250-275 zone for a handsome gain in the next 3 months.Just another thought here. Never attempt intra day trade in Bajaj Hindustan. Never!!You may get wiped away in seconds.

Balrampur Chinni(CMP:97.45)
That brings us to its younger brother Balrampur Chinni to the fore.Technically,this scrip is in a better position compared to the earlier one(Big B!!).90 is the strong support zone.This scrip is in a long term consolidating mode ,moving in an ascending triangle.If breached, a move to sub 80 levels is on cards.On the upper end of the triangle, we may see a target of 126 for this scrip.Balrampur is less volatile compared to Bajaj Hind and a worthy scrip to invest at 95-98 levels.Keep a strict stop-loss at 89.You may never know the decision of the government in this regard.

Dhampur Sugar( CMP:108)
The negative sentiment on the sugar sector had a profound impact on this stock as well.This scrip is near its yearly low.if only i could get my IPO refund, i would like to invest my money in this scrip.Beware.This scrip is exactly at its support.If 108 is broken a slide to the next support zone at 104 is on the cards.

Rajshree Sugar(CMP:97.4 ):
The volumes on friday would convey to me that this looks to be a false move. By my analysis, the scrip shall soon enter a buy mode.We shall have to wait for a close above 110 to confirm it.On the other hand,one may place a Stop-loss at 90.With the market at an all-time high, this week,if we have a 300 point slide on the sensex, one may have to run for cover as Rajshree is the weakest link of the lot.
And that is why,it is always advisable to repose faith in index stocks like Bajaj Hind and Balrampur Chinni.

Cheers