Buy Balrampur Chini at current levels: Devang Visaria, Devangvisaria.com

Devang Visaria, Chief Strategist, Devangvisaria.com, in a chat with ET Now talks about Balrampur Chini.

What is your outlook on Balrampur Chini?

Most of the sugar stocks have declined way beyond their critical levels and now the selling is really overdone. Yesterday you had a decent spurt in the volumes. Also the fact that many of the sugar stocks are having their limit full in the options market or a derivative segment makes me believe that people who are short in these stocks would have no option but to cover their shorts. So there could be a chance of a good pullback rally in most of these stocks.

So on Balrampur Chini, we are recommending to buy at current levels and again add on dips to around 71-72. We have a stop loss just below 68 and we look for targets of 84 and 90 over the next one or two weeks.

We are putting a higher timeframe for the simple fact that outlook on the Nifty is likely to be range bound between 5050-5300 levels and in a range-bound market, it would be a slow and painful rally and a slow and painful decline. So that’s the reason we are having a slightly longer timeframe on most of our recommendations.