Upper Ganges Sugar

We recommend a buy in the stock of Upper Ganges Sugar and Industries from a short-term perspective. It is apparent from the charts of the stock that the stock found support in the range of Rs 76 and Rs 80 during early November 2009 and bounced. Subsequently, it resumed the longer-term uptrend that has been in place since the December 2008 low of Rs 29, forming higher peaks troughs. Following a short-term sideways consolidation around Rs 90, the stock made an upward breakthrough by gaining 5 per cent on January 4. The stock's bullish momentum prolonged and the stock is well above its21- and 50-day moving averages. We notice that there has been an increase in volumes over the past three trading sessions. The daily as well as weekly relative strength indices are featuring in the bullish zone. A sign of optimism is observed in the moving average convergence and divergence indicators. Considering that the stock's longer-term uptrend-line is in tact, we are bullish from a short-term horizon. We expect it to move up until it hits our price target of Rs 116. Traders with short-term perspective can consider buying the stock with Rs 99 as stop-loss.
via BL