IndiaTechnical Analysis

Balrampur Chini Mills Ltd. – Technical Analysis

Balrampur Chini Mills Limited is one of the largest sugar manufacturing companies in India with significant strength in the manufacture of downstream products like power (co-generation) and ethanol.

The Market capitalization of Balrampur Chini Mill is 8100 crores which makes it a mid-cap company.

Support and Resistance 

o Daily Time Frame

The stock has formed a good Support around 340, after forming a triple bottom pattern it has given a good rally till 450. After that stock has corrected around 20%. Now Stock has resistance around 390-400 and Support around 335-340. Once it will cross the resistance with good volume then it can go to till 450 which is it’s all-time High. 

MACD On Daily Chart

MACD on the daily chart indicates Negative sentiment despite a good rally on Monday. Although Negative Sentiment has decreased slightly, it still has not come in the positive zone.

o Weekly Time Frame

Stock has formed a good base around 295-300 on weekly charts. After consolidating for almost 25 weeks in the range of 300-390, the stock has given a breakout and went upto 450 but couldn’t sustain and came back again at 390. The stock has a support here at this level, Now Closing  above 390-400 on a weekly candle makes this stock more stronger and 450 levels will come soon.

RSI and Moving Average

On the Weekly chart RSI is 56.18 which shows little strength and if RSI goes till 70 then stock price can also move drastically from here.

Stock is trading above 20, 50 and 200 Exponential Moving Average (EMA) which is also a positive sign. 

Stock has taken multiple support on 50 EMA and is now trading above 20 EMA. 

Fibonacci Analysis

The stock has rallied from 299 to 459 and then Retraced 61.80% (360). 61.80% is healthy retracement for any stock. 

Now the stock is trading around 38.20% retracement & once it will cross this level, the next target comes around 423(23.60%) and 459 which is the highest point of this FIBO level.

Conclusion

After rallying from 299 to 459 (i.e. almost 150 points), the stock has consolidated 5-6 weeks.

Now Stock is once again ready for the upward move.

After breaking 400 level, the stock can touch its all-time i.e 459 and it can break it for further upside target.

Disclaimer: This is for educational purposes and not a trading suggestion.

Balrampur Chini Mills Ltd. – Fundamental Analysis

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