Sugar Stocks: Uttam Sugar, Avadh Sugar, Bajaj Hindusthan Sugar, Triveni Engineering hit new 52-week high; here’s why

Sugar Stocks news: Overall sugar stocks were in buzz on Monday's trading session following the announcement that the Uttar Pradesh government is expected to increase the State Advisory Price (SAP) for sugarcane, as reported by CNBC-TV18.

The announcement is most likely to be made today, according to the CNBC-TV18 report. In addition, a price increase of ₹25 per quintal is anticipated for SAP for the 2023–2024 season.

Uttam Sugar Mills (up over 6%), Ugar Sugar Works (up over 4%), Mawana Sugars (up over 3%), K M Sugars Mills (up over 6%), Dalmia Bharat Sugar & Industries (up nearly 7%), Sakthi Sugars (up nearly 5%), Avadh Sugar & Energy (up over 8%), Balrampur Chini Mills (up over 2%), Bajaj Hindusthan Sugar (up nearly 14%), Triveni Engineering & Industries (up over 6%) were all trading in the green zone.

Uttam Sugar Mills share price, Avadh Sugar & Energy share price, Bajaj Hindusthan Sugar share price, Triveni Engineering & Industries share price touched new 52-week high in today's session.

Further, analysts believe rising crude oil prices and the weakening rupee are other factors contributing to the increase in sugar stock prices. Government officials consider other energy sources that can partially replace crude whenever its price rises. Oil marketing companies will have to pay more to import oil as a result of the falling rupee and rising crude oil prices.

Moreover by 2025, the government hopes to meet its 20% ethanol blend target. In such a scenario such stocks would benefit.

Oil prices have risen at their highest levels since November 2022. Brent oil is trading above $88 per barrel and WTI crude oil is trading above 8$5 per barrel. For the month of August, rupee depreciated 0.66%.

The expectation that supply reductions by OPEC leaders will tighten the market caused crude oil prices to rise to their highest level since November, according to reports. In addition, Russia has stated that export restrictions will be extended; more information regarding the restrictions will be made public in the upcoming days. The OPEC alliance is led by Saudi Arabia and Russia, and traders anticipate that Saudi Arabia will follow suit by delaying its voluntary curbs until October.

Technical Views

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, Uttam Sugar Mills share price has risen more than 8% and has broken beyond previous swing high backed with strong volumes, expect this traction to continue with 660 as next target and 600 as support.

Further, Bhosale said that Avadh Sugar & Energy share price have given mulitple month breakout with sustaining above 600, the stock can be bought for a good returns in near term where possible the stock could head towards 700 in near term. 600 the previous resistance is likely to act as support.

According to Rajesh, Bajaj Hindusthan Sugar stock has been one of the outperformer from this space and today as well strong traction of more than 11% is seen, 32 is the next resistance whereas 25 as support. 

Triveni Engineering & Industries stock,  post the recent correction phase, prices have resumed primary uptrend and has given a breakout with bullish gan and volumes. the stock prices can test its last years high of 375 with 310 as immediate support. 

Also Read: Rupee ends 6 paise lower at 82.79 against the US dollar; falls 0.66% in August