Avoid sugar stocks: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com, in an interview with ET Now talks about sugar stocks.

What is happening with the sugar pack, the charts are bit of a bounce back today but they have taken a beating all right Renuka is up 7% today, some of the other ones are bouncing back, look good for more?

Yes, may be with the market they will go ahead up a bit more and they are pretty volatile in both directions so when there is a nice market rally and they are participating sugar can do wonders for traders but for investing I think sugar is still an extremely bad idea.

They are tending to make new lows all the time as I said before if you look at the rallies and particularly again Bajaj Hindusthan and Balrampur it took 6 or 7 months to achieve a certain gain which these stocks gave back in 3 weeks so it shows that the little bit of pressure from the market and sugar tanks again so not a good long term investing idea.