Renewed interest in sugar, ethanol reasons for surge in Praj Industries

Renewed interest in sugar, with crude prices rising, ethanol has come back into play, so all of these is reflecting well in Praj Industries which makes machines for ethanol.

In February, the stock has risen over 40 percent odd and it is now just around 5 percent away from its 52-week high. The stock has bounced nearly 300 percent from its 52-week low.

The technical levels are important to watch given that its above Rs 160, the 20-day moving average (DMA) comes in at around Rs 134 and the 50 DMA comes in at Rs 124 as well and at higher levels what is backing the stock is fair amount of delivery buying because on Friday (February 26) there were 29 lakh shares which were marked for delivery which is nearly 3-times that we have seen in all of February and almost 3.5 times that we have seen in all of 2021. So perhaps there is some momentum on Praj Industries.