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Uttam Sugar has target of Rs 70.50-71: Gujral
Uttam Sugar Mills has target of Rs 70.50-71, says Technical Analyst, Ashwani Gujral. This stock corrected back from Rs 81 to Rs 68, big down bars. The key to making money is buying a strong sector after a correction, so given the sector tailwind this could go back to Rs 81 over the medium-term.
Gujral told CNBC-TV18, "I would like to buy Uttam Sugar in place of Thomas Cook. Two things work in the festive season, one is auto and the other is sugar and we can see both are doing well. So here the target could be Rs 70.5 to Rs 71 for the day. This stock corrected back from Rs 81 to Rs 68, big down bars. The key to making money is buying a strong sector after a correction, so given the sector tailwind this could go back to Rs 81 over the medium-term."
He further added, "The sugar stocks went into a correction thinking that government may come out with some extraordinary measures. So while the sugar futures, the underlying commodities were going up the sugar stocks were actually correcting. Now it's clear that the government is unable to control sugar prices these stocks have again started rallying back. This is a sustainable move because the underlying commodities moving up, they move to 28.5 year high yesterday, so till that continues moving up. I don't think the sugar companies are going to go down."
