Above Rs 119, Shree Renuka can retest Rs 139: Manghnani

Anil Manghnani of Modern Shares & Stock Brokers is of the view that above Rs 119, Shree Renuka can retest Rs 139.

Manghnani told CNBC-TV18, "Probably sugar is one of the better sectors to be trading right now. I think the good thing with sugar is the bottom has been made in any sort of a fall or carnage, their January or March lows or the last year’s lows, which were retested in January or March are not being retested again, so that is very encouraging and a bonus for that sector. So everytime the market falls especially many of them are traded in the F&O, you are going to see lot of interest. Renuka has bounced quite a bit from the recent lows of Rs 87 and I think the first major resistance is going to be Rs 119. Only if it crosses Rs 119 then I think it has a chance to go and retest the recent top of Rs 139."

He further added, "For Bajaj Hindusthan around Rs 193 is the immediate trading target, if it crosses that then probably you could see a much bigger move. I think those two are looking, if you are talking about strength or trading wise, they have more upward traction between the pack of Balrampur Chini and Triveni Engineering. I think Triveni may be little more difficult because it has engineering and not just sugar, but I will stick to Renuka and Bajaj on any decline, I think they make for good trading opportunities."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.