Andhra Sugars

We recommend a buy in the stock of The Andhra Sugars from a short-term perceptive. It is seen from the charts of the stock that since its March 2009 low of Rs 52, it has been trending upwards. However, following a medium-term correction from Rs 160 to Rs 105, resumed the uptrend in early November 2009. Since then, the stock has been on an intermediate-term uptrend, shaping higher peaks and higher troughs. Moreover, short-term trend is also up for the stock from Rs 123. On September 2, the stock jumped 4 per cent with good volume, breaching its 21-day moving average.



It is currently trading above its 21 and 200-day moving averages. Reinforcing the bullish momentum, the stock climbed two per cent with above average volumes on Tuesday. The 14-day relative strength index has entered into the bullish zone from the neutral region and weekly RSI is on the brink of entering this zone. Further, the daily moving average divergence oscillator has signalled a buy and is heading towards positive territory whereas weekly oscillator is already featuring in this territory.

We are bullish on the stock from a short-term perspective. We expect the stock to rally further until it hits our price target of Rs 138 or Rs 143 in the forthcoming trading session. Short-term traders can buy the stock while maintaining stop-loss at Rs 131.