Momentumisers: Can Balrampur Chini continue to extend its sweet rally?

On momentumisers today, we bring to you Balrampur Chini, which outperformed even in a weak market on Friday, ending 2.15 percent higher compared to a 1.6 percent drop in the Midcap index and a 1 percent drop in the smallcap index.

Over the last month, the stock has gained nearly 15 percent, outperforming the Nifty Midcap index, which has gained just about 3.5 percent during the same period.

The trading volumes on Balrampur Chini on Friday were way higher than its 10-day average. Over 90 lakh shares of Balrampur Chini were traded on Friday, over 6x higher than its 10-day average of 14 lakh shares.

Even with regards to delivery volumes, that stood at 16 lakh shares on Friday, 4x higher than its 10-day average of 4.75 lakh shares. High traded volumes, backed by delivery, resulted in the stock moving higher.

The stock also saw a 12 percent addition in open interest towards fresh long positions. However, the stock has moved into the F&O Ban, which means that traders can now only exit existing positions, or square them off until the stock exits the ban.

On the downside, important levels for the stock are the 20-day moving average at Rs 376 and the 50-day moving average at Rs 355. The stock is currently trading above both levels.

Shares of Balrampur Chini are up for the fourth straight day on Monday, currently trading 2.3 percent higher at Rs 403. Balrampur Chini was also a buy recommendation this morning from Mitessh Thakkar of earningswaves.com, who recommended a buy with a stop loss of Rs 387 and a price target of Rs 405 - Rs 410.