Renuka Sugar 26th Nov 2015
Renuka Sugar share price has corrected from 18.05 to 14.55 the Share price has started up move again today. As per our analysis of share price we had initiated buy call in Renuka Sugar at 7/8 Rs and today below 15 Rs we did initiate fresh addition call in Renuka Sugar. As we have clearly indicated that we are seeing a super bullish cycle to begin in sugar sector that will begin from 15th Dec 2015 and will last at least for 26 months taking international raw sugar prices to unbelievable prices. As per our analysis the share price is nearing the end of a corrective phase and now we will see a resumption of the bullish cycle that we have been mentioning.
Please understand me clearly I am not suggesting Renuka Sugar for trading it is a investment call and it is a buy on dips and hold trade for the next 24-30 months as in between we will see good volatility also but corrections will come and go and eventually on longer term time frame charts it will be crystal clear on the charts and longer term share price that it is making classic higher tops and higher bottoms. Such structures will always keeping higher each correction in the share price / stock should be used as a buying opportunity as main trend will remain up now for next 24-30 months.
Government of India and North Block officials have been told to work out solutions for the farmer dues issues and the only longer term solution to that is decontrol of sugar prices in India. Further international raw sugar prices will keep moving higher due to production short falls and we are clearly been saying we do not see a good harvesting season and after poor monsoon this year most farmers are not looking at growing fresh sugar cane and that in turn will boost sugar prices internationally and locally.
If we consider the stock purely on the basis of technical analysis the most basic studies of price volume indicate very clearly that the pullback that started from 18.05 towards 14.55 is a corrective wave. During the pullback form 18.05 to 14.55 there is hardly any notable volume, while on the move up from 7/8 Rs we did see massive volumes on the long side. The smart money is telling us the Main Trend is up and dips must be used to buy and hold the stock.
Will share a very important lesson that my guru thought me when satyam problem had come if it is a need based service or commodity and when everything that can go wrong in the sector does go wrong “Ghar bech ke buy karo “ because the worst and all problems are in the price. Same way all problems in sugar sector have been factored in the price. Reiterate Buy and Hold Renuka Sugar for Target price of 68 in 24 months.
Good Investing To You!