Dhampur Sugar is the stock to buy: Kotak Securities

Shrikant Chouhan, SVP Technical Research, Kotak Securities, in a chat with ET Now talks about the sugar space.

With the kind of activity that we have been seeing here, would you recommend probably this is the turn of the cycle for sugar stocks and you can probably go ahead and look at buying some of these stocks?

We can say that we can expect some bounce back, dead cat bounce we can say because we have seen very steep sell off in almost all the stocks. Whatever the gain that we have seen in the year 2009-2010, this particular sector has almost vanished 70-75% of that. But because of that, we can expect some bounce back and in that space.

I would like to go with Dhampur Sugar, which is currently quoting at 60. But this particular stock has shown very strong positive divergence on daily as well as on weekly charts. So this one is the stock to look for to buy.