Buy sugar stocks on decline: Thacker

Technical Analyst, Mitesh Thacker of miteshthacker.com is of the view that one can still buy sugar stocks on decline but the upside in the short term could be limited to around 5-8%.

Thacker told CNBC-TV18, "Broadly what has happened is that if you were to look at the charts for the last 6-8 months these sugar stocks have gone 2 or 3 times from the lower levels. Now my belief is that they are entering a much-much broader range which could cover atleast 15-20% on the price moment side so we have seen a Bajaj Hindusthan makes tops of around Rs 225-230 at those levels and these stock gets very good support at the Rs 190-180 kind of range. So it is become a very broad range.”

He further added, “Similar kind of movement from Balrampur Chini, Rs 115 high the stock tops Rs 130-125 the stock is a very good buy. So I think that is the kind of movement which you are seeing in sugar sector. Still a good sector to buy on decline but the upside in the short term could be limited to around 5-8%.”