Sugar stocks in a long term downtrend: Deepak Mohoni, Director, trendwatchindia.com

Deepak Mohoni, Director, trendwatchindia.com, in a chat with ET Now talks about the sugar stocks.

| Jul 01, 2010, 04.08 PM IST

Deepak Mohoni, Director, trendwatchindia.com, in a chat with ET Now talks about the sugar stocks.

What are your thoughts on the entire sugar space?

Sugar is diverging. The stocks are not even behaving like each other anymore. When the market was in an uptrend, we had good performances from Renuka and Bajaj Hindustan and Balrampur Chini had done quite poorly. Now we are seeing a little bit of buying in Balrampur Chini and the other two have gone quite.

But the one thing all the sugar stocks have in common - except may be something like an EID Parry - is that they are in a long term downtrend. They are in a very clear cut bear market. So there is no reason at all to hold any of them in a long term portfolio. They provide some trading opportunities now and then. At this point they are not so weak as to go short.

So they are not good short selling ideas but there could be times when the market goes up a little bit. At such a time may be Balrampur Chini can be looked at, but otherwise not much from the pack.

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