Sugar stocks may correct further: Ambareesh Baliga
With the sort of bumper production which we were expecting for sugar, the sugar prices should in fact correct further from here.
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| Updated: Ambareesh Baliga, COO, Way2Wealth Brokers Pvt. Ltd.
What is your call on sugar stocks like Renuka, Bajaj Hindusthan and also Jain Irrigation?
Jain Irrigation, fundamentally we had a price target of about 200-210 when the stock was quoting at about 150-155 but then after that we saw it moving to 165-170 levels and then crashing to 131. From there it has recovered, so I do not think in this move it can go to those levels of 200-210, it will take a while. If people have bought it at lower levels even at about 140-150, one should be booking out to a certain extent at the current levels of 173-175.
Sugar stocks again it has over done already. Most of these stocks have recovered from their lower levels. Renuka was at around 56-58 levels, from there we have seen levels of 74. Right now it is about 70-70.5. This move also is done and especially with the sort of bumper production which we were expecting for sugar, the sugar prices should in fact correct further from here, so I do not see Renuka moving to levels of 80-85 so it could be prudent to book out to a certain extent at these levels.
What is your call on sugar stocks like Renuka, Bajaj Hindusthan and also Jain Irrigation?
Jain Irrigation, fundamentally we had a price target of about 200-210 when the stock was quoting at about 150-155 but then after that we saw it moving to 165-170 levels and then crashing to 131. From there it has recovered, so I do not think in this move it can go to those levels of 200-210, it will take a while. If people have bought it at lower levels even at about 140-150, one should be booking out to a certain extent at the current levels of 173-175.
Sugar stocks again it has over done already. Most of these stocks have recovered from their lower levels. Renuka was at around 56-58 levels, from there we have seen levels of 74. Right now it is about 70-70.5. This move also is done and especially with the sort of bumper production which we were expecting for sugar, the sugar prices should in fact correct further from here, so I do not see Renuka moving to levels of 80-85 so it could be prudent to book out to a certain extent at these levels.
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