Shares of Bajaj Hindusthan Sugar hit their upper circuit level of 10 per cent in Friday’s trade. Other sugar stocks also gained as the government said it may consider increasing sugar export quota for the current 2022-23 marketing year. For Bajaj Bajaj Hindusthan Sugar, a strong technical trend too was at play.
The stock jumped 9.99 per cent to Rs 17.18 over its previous close of Rs 15.62. A total of 1.05 crore shares changed hands on BSE, amounting to a turnover of Rs 17.83 crore. The lender’s market capitalisation or m-cap stood at Rs 2,194.50 crore.
At today’s high level of Rs 17.18, Bajaj Hindusthan has gained 105.26 per cent compared to its August low of Rs 8.37.
The stock has climbed 10.34 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has gained 13.77 per cent.
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Analysts largely felt that Bajaj Hindusthan stock’s immediate resistance is seen around Rs 18.50 level. It may climb up to Rs 21 once it surpasses the said level, said one analyst while another suggested that the stock is ‘overbought’ and investors can look to book profits at current levels.
Osho Krishan, Senior Analyst- Technical & Derivative Research at Angel One, “There has been a buzz in the sugar counters in today’s session, mirroring to which Bajaj Hindusthan Sugar has also soared upwards. On the technical aspect, the stock has a bullish gap placed at Rs 14.60-13.50, and till it sustains above the same, it is expected to stay in the short-term uptrend. On the flip side, the immediate resistance is placed around Rs 18.50, surpassing which it may re-test the recent swing high of Rs 21 in the comparable period.”
Pavitraa Shetty from Tips2trades, said, “From a journey of insolvency to payment of all OCD (optionally convertible debentures) dues, Bajaj Hindusthan stock price has surged since the past few weeks on the back of a strong uptrend even in the small cap index. Technically, the stock is overbought and investors should book profits at current levels up to Rs 18.50. New buy positions should be created only near Rs 11-11.5 levels.”
The government would consider allowing additional sugar exports under the quota system in January after assessing local production, Food Secretary Sanjeev Chopra told news agency Reuters.
Other sugar stocks also surged as Bannari Amman Sugars jumped up to 6.87 per cent, Dalmia Bharat Sugar & Industries moved 9.12 per cent higher, Shree Renuka Sugars advanced 6.35 per cent, Balrampur Chini Mills rose 4.71 per cent, Dwarikesh Sugar Industries climbed 7.53 per cent, Vishwaraj Sugar Industries zoomed 12.46 per cent, KM Sugar Mills soared 12.39 per cent, Avadh Sugar & Energy moved 7.23 per cent up and EID Parry gained 4.07 per cent.
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Meanwhile, Indian equity benchmarks fell sharply in late deals today amid weak cues from the global markets.