Views on Sugar Sector for next 3 months

[frombangalore]

Dear All,

From last few weeks we have seen that sugar counters are not doing good and there prices are falling like anything.

Few moneycontrol experts who recommending to buy counters in sugar space like Balrampur / bajaj Hing, Shree renuka in first week of April for 3 - 6 months are not standing by there comments and see a bearish trend for long term.

Some who were bearish earlier are seeing value in sugar space.

Now considering this situation and listening to such comments from expert gives a confused state.

It will be helpful if experts on this forum can throw somelight on sugar industry.

What could be the future for counters like balrampur, bajaj hind, dhampur, shree renuka in coming three months.

shall we make new buying positions in current situation and those have invested in first week of april shall exit or keep holding.

Thanks

 

[scplindia]

Sugar Companies are saying that sugar prices have bottomed out, excess production in Brazil is the reason, now if monsoon in India does well, the production in India will also be good, until then status co, I donot expect further fall, unless nifty falls, then sugar stocks will also go down along with it.

 

[bunny]

I am bullish on sugar space.

 

[findvikas]

Sugar is sweet but excess of anything is bad for your health and you may become diabetic... so eat as much as you can digest... play with 1:1 and hold with a horizon of at least 6 months.

 

[d_s_ramesh]

Sugar stocks are in a strong bear trend. Daily charts shows to have bottomed out, this strength would take the stocks close to its value zone and then they will resume the fall.

If you want a small timeframe speculative position, you may think of entering all the stocks you have mentioned above the high of Friday. But, be cautious catching a falling knife is dnagerous.

On a recovery, keep a very close watch and exit positions on the first signs of weakness.

 

[AlokTewari]

Hi Vikas,

Forming a view on sugar for 6 months time frame is like buying a block of ice for using it next week. You either pay for keeping it intact or it melts. Sugar is highly politically sensitive commodity in India & is still very much in Governement control. Only extreme global circumstances ( Like what we had until few months back ) leave Govt. helpless. If sugar prices are allowed to go very high, it hurts everyone & if prices fall too much, so does sugarcane procurement price which hurts Farmers. Hence Govt. action comes both ways. This makes Sugar a good trading stock but not an investment stock. For last over a month Sugar has been on downward spiral but now technicals have turned & sugar stocks will show upside until technical turn negative again or global situation Vis-a-vis Sugar changes for good or for bad or some specific company news comes along.

Cheers !!!

Alok Tewari

 

[parnabmaster]

hi,
Before buying sugar stock check out the market price of sugar in the ration shop
If it shows slight increment from previous price start accumulating in small quantity
10% at a time.Bajajhind is a good counter as it has other business too like power etc..

wr
parnabmaster

 

[scplindia]

Hi Vikas,

Forming a view on sugar for 6 months time frame is like buying a block of ice for using it next week. You either pay for keeping it intact or it melts. Sugar is highly politically sensitive commodity in India & is still very much in Governement control. Only extreme global circumstances ( Like what we had until few months back ) leave Govt. helpless. If sugar prices are allowed to go very high, it hurts everyone & if prices fall too much, so does sugarcane procurement price which hurts Farmers. Hence Govt. action comes both ways. This makes Sugar a good trading stock but not an investment stock. For last over a month Sugar has been on downward spiral but now technicals have turned & sugar stocks will show upside until technical turn negative again or global situation Vis-a-vis Sugar changes for good or for bad or some specific company news comes along.

Cheers !!!

Alok Tewari

Well said Alok.