Renuka Sugar- getting Sour !!!

The Nifty remained directionless today as markets await the Railway budget tomorrow. The market's internal structure seems to be weak - even though the Nifty is giving positive close, the Advance to Decline ratio (AD Line) is highly negative. This indicates extreme caution.

Among the sugar counters, Renuka Sugars has been in news recetnly on account of its proposed overseas acquisition. In fact the market's reaction to overseas takeovers by companies like Bharti Airtel and Renuka Sugar suggests that it may not be the correct time for Indian Companies to go 'shopping' abroad. We may as well have a hidden market message here.



Renuka Sugars stock seems to be at a highly crucial level which has the potential to decide its long term trend.

A break and close below Rs 170/- should be a signal to long term investors in this stock to exit and take profits. Traders too may want to encash the down move. On down break out, expect sub-Rs 140 levels in the coming days.

Happy 'budget' watching

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.
www.investogyan.com