Top buzzing stock: Balrampur Chini Mills Ltd

The stock of BALAMCHIN is extremely bullish today and has surged about 5%.

Balrampur Chini Mills Limited is an integrated sugar manufacturing company, engaged in the manufacturing of sugar, ethanol, and power. With a market capitalization of about Rs 10000 crore, it is one of the strongest midcap company in its sector.

The stock of BALAMCHIN is extremely bullish today and has surged about 5%. On the technical chart, it has crossed above its multiple resistance levels of Rs 500 and Rs 505. It has formed a strong bullish candle with its open=low and trades nearly at a day’s high. Moreover, the stock has recorded greater than 10-day average volume, indicating good trading activity. 

Along with its strong price structure, the technical indicators also point towards the bullishness in the stock. The 14-period daily RSI has entered bullish territory and is above the prior swing high. Thus, the RSI and price action are both increasing is a sign of bullishness. Moreover, the trend indicator ADX is placed just below 25 and points northwards, indicating a good uptrend of the stock. The stock trades above all the key short term and long term moving averages and justifies the bullish bias. Interestingly, the On Balance Volume (OBV) has hit a higher high and demonstrates good strength in the stock from the volume’s perspective. Thus, the overall picture looks good.

The stock has performed exceptionally well in recent times. On a YTD basis, the stock has generated a massive return of over 37% while its one-month performance stands at 19%. Also, the stock has outperformed the broader market and most of its peers.

Considering its strong price structure and volume, bullish technical parameters along with strong performance lately, the stock is expected to trade higher in the coming days. It has the potential to test the level of Rs 521.40 which is its all-time high level, followed by Rs 535. Moreover, it presents a good opportunity for swing trading and traders can expect decent gains from this stock.