Monday, 15 December 2008

Shree Renuka Sugars (Rs 62.05): Buy

We recommend a buy in Shree Renuka Sugars from a short-term perspective. It is apparent from the charts of Shree Renuka Sugars that after encountering resistance at around Rs 140 in early August, it experienced selling pressure and declined sharply to record a 52-week low of Rs 41 during late October. The stock, however, reversed direction triggered by positive divergence in the daily relative strength index (RSI). Since its 52-week low, the stock has been on a medium-term up trend. Recently Shree Renuka breached its 21-day moving average. Moreover, the stock’s 8 per cent gain on December 12 reinforced its bullish momentum. We note that there is an increase in volume over the past three trading sessions. The daily RSI is on the brink of entering the bullish zone from the neutral region and the weekly RSI is likely to enter the neutral region. We are bullish on the stock from a short-term horizon. We expect the stock to move up until it hits our price target of Rs 69 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 58.50.

Source: TheHinduBusinessLine

Day Trading Guide - December 15, 2008

Source: TheHinduBusinessLine

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.