Shree Renuka Sugars’ Share Price: Technical Analysis and Chart Patterns

In this article, we will discuss:

• Shree Renuka Sugars: An Overview
• Shree Renuka Sugars’ Share Price: Chart Patterns
• Shree Renuka Sugars’ Share Price: Technical Analysis 
• Potential Trading Opportunities for Shree Renuka Sugars’ Shares 
• Conclusion

While sectors like information technology, energy and financial services are almost always in the limelight, few investors focus on companies in the agricultural and bio-energy sectors. Interestingly, if you do your due diligence and choose high-growth stocks from this sector, you can capitalise on the potential opportunities for growth and profitability they offer. 

One of the top companies in this sector, Shree Renuka Sugars, is an option worth exploring. If you are interested in trading Shree Renuka Sugars’ shares, it’s important to understand the company’s business, study the price chart patterns and understand how the company’s prices may move shortly. In this article, we’ll take a closer look at the company’s profile, what Renuka Sugars’ share price charts can tell us and how its technical indicators stand. 

Shree Renuka Sugars: An Overview

Established in 1998, Shree Renuka Sugars Limited is one of the leading sugar producers in India and one of the largest sugar refiners in the world. The company's core product, sugar, is manufactured in multiple facilities across India. Shree Renuka Sugars has also capitalised on the strategic locations of its mills in cane-rich regions, so it enjoys efficient access to raw materials and optimised transportation costs. 

The company operates not only within the domestic Indian market but has also made a substantial footprint internationally, particularly in Brazil, which is one of the world's most significant sugar markets. Today, the company’s state-of-the-art refineries produce a wide range of products — from refined sugar to speciality sugars catering to a diverse clientele that includes food and beverage manufacturers, pharmaceuticals, and confectionery industries.

Shree Renuka Sugars’ business portfolio also extends beyond sugar to include the production of ethanol and power generation. Ethanol, derived from sugarcane, is a key component in blended fuels and has been gaining attention as an environmentally friendly alternative to fossil fuels. So, diversifying into ethanol production has allowed Shree Renuka Sugars to tap into the growing demand for renewable energy sources. 

Shree Renuka Sugars’ Share Price: Chart Patterns

Shree Renuka Sugars’ share price can best be studied using candlestick patterns. Based on the platform you are using, you can find candlestick charts of varying durations. In the Samco trading app, you get free access to TradingView charts ranging from 1 minute to 1 month. You can also use this platform to view and monitor Renuka Sugars’ share price charts in different variants like the conventional candlestick pattern or other styles like bars, line, area, columns, Heikin Ashi, Renko, Kagi, Point & Figure and more. 

Today, we’ll opt for the traditional candlestick style to view Renuka Sugars’ share price charts. Check out Shree Renuka Sugars’ share price movements in the chart below, for the period from mid-December 2023 to February 29. 2024. 

The area that has been distinctly boxed in the Renuka Sugars’ share price chart above shows the stock’s price movement over the last week ending on February 29, 2024. Let’s examine the candlestick patterns in this time frame and evaluate what they reveal about Shree Renuka Sugars’ share price 

• Prevailing Downtrend 

There's a clear downtrend indicated by the consecutive red candles for 6 trading days in quick succession. This suggests that the market sentiment has been predominantly bearish over this period beginning on February 21, 2024.

• Three Black Crows 

The ‘three black crows’ is a bearish candlestick pattern typically used to signal the reversal of the current uptrend in a pricing chart. It consists of three consecutive candlesticks that open within the body of the previous candle. Thereafter, they close lower than the candle on the previous day, resembling a staircase stepping downwards.

In the Renuka Sugars’ share price chart, we have a similar pattern where six red candles create a downward-stepping pattern — essentially forming two consecutive ‘three black crows.’ This is quite unusual, but it indicates a very strong bearish sentiment in the market.

• Bullish Harami 

A bullish harami pattern includes a large red candle followed by a green candle that is completely engulfed by the first candle. The Renuka Sugars’ share price chart reveals a bullish harami pattern on the last 2 days in the period chosen (i.e. February 28 and 29, 2024). 

This pattern follows the two consecutive 'three black crows' in the chart, indicating a potential reversal of the prevailing downtrend. This scenario suggests that after a period of strong selling pressure, the market sentiment may be shifting. 

• Confirmation of Trend Reversal

The combination of three black crows and a bullish harami merely suggests a bullish reversal may occur; it does not confirm a trend reversal. You need to observe the Renuka Sugars’ share price chart over the next few trading sessions and look for additional confirmation before taking action. The confirmation can be evaluated through other technical indicators or subsequent bullish price action. 

Shree Renuka Sugars’ Share Price: Technical Analysis 

In addition to studying Renuka Sugars’ share price charts, you also need to perform technical analysis before making a decision. Various indicators like moving averages, resistance and support levels and the average true range (ATR) data can help. Let’s take a closer look at these indicators for Shree Renuka Sugars’ shares. 

• Simple Moving Averages (SMA) and Exponential Moving Averages (EMA)

The SMA and EMA data for Shree Renuka Sugars’ shares over different durations as of February 29, 2024, are as follows:

Since both the 5-day SMA and EMA are lower than the 10, 20, 50, 100, and 200-day averages, they indicate a recent dip in price and suggest a short-term downtrend. This is confirmed by the double ‘three black crows’ pattern witnessed in the candlestick charts. 

On the other hand, the 100-day averages (both SMA and EMA) are above the 200-day averages, which typically indicates a bullish trend over the longer term. However, since the very short-term averages (5-day SMA and EMA) are below the longer-term averages, this could suggest that the stock is experiencing a pullback or consolidation within a broader uptrend.

• Support and Resistance Levels

On February 29, 2024, Shree Renuka Sugars’ shares closed at ₹46.80. Around this time, the support, resistance and pivot levels of the stock were as follows. 

The stock is currently at a critical juncture. Being at the R1 level suggests that it has some bullish momentum, as it has moved up to test this initial resistance level. However, this also means that the stock is at a point where it could either face selling pressure and possibly reverse or, if it has enough momentum, break through this resistance and move towards the next resistance level (R2 at ₹47.60).

In the Renuka Sugars’ share price charts, this is corroborated by the green candle after six consecutive red candles. If the bullish momentum sustains and the company moves past R2 to R3, you should see more green candles following the last one. 

• Average True Range (ATR) Data 

The average true range (ATR) is a technical indicator that helps assess market volatility by analysing the data on asset prices for that period. Specifically, it captures the degree of price movement or price volatility over a particular time frame. Check out the ATR data for Shree Renuka Sugars’ shares below. 

Potential Trading Opportunities for Shree Renuka Sugars’ Shares 

Based on the Renuka Sugars’ share price charts and the technical indicators discussed above, the following trading opportunities may arise in the coming sessions, depending on how the stock price moves. 

• Breakout Potential

If the stock price can sustainably break above ₹46.80 (R1), it may indicate strong buying pressure and potentially lead to a move towards the next resistance level at ₹47.60 (R2). In that case, you can employ a breakout strategy and enter a long position if the momentum continues

• Reversion from Resistance

If the stock struggles to maintain its position above R1 and shows signs of pulling back, this could indicate a reversion or consolidation phase. In that case, you need to look for short-term short-selling opportunities. Or, you can wait for potential buying opportunities when the stock pulls back to the pivot point (₹46.10) or further down to its support levels.

• Range Trading

Since Shree Renuka Sugars’ shares have been trading in the range of around ₹44 to around ₹54 over the past month or so, and show no strong signs of reversal, it means the stock is moving within a defined range. This may present potentially lucrative opportunities for range traders who want to capitalise on a sideways market. 

Conclusion

Before you decide on whether to take a long or short position, it’s crucial to wait for trend reversal or pullback confirmation. To do this, you need to further track the price of Shree Renuka Sugars’ shares and watch the charts. Samco’s trading app can help you with this. To access never-before-seen insights and analytical tools, sign up for a Samco demat and trading account and download the Samco trading app today. 

Disclaimer: INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING. The asset classes and securities quoted in the film are exemplary and are not recommendatory. SAMCO Securities Limited (Formerly known as Samruddhi Stock Brokers Limited): BSE: 935 | NSE: 12135 | MSEI- 31600 | SEBI Reg. No.: INZ000002535 | AMFI Reg. No. 120121 | Depository Participant: CDSL: IN-DP-CDSL-443-2008 CIN No.: U67120MH2004PLC146183 | SAMCO Commodities Limited (Formerly known as Samruddhi Tradecom India Limited) | MCX- 55190 | SEBI Reg. No.: INZ000013932 Registered Address: Samco Securities Limited, 1004 - A, 10th Floor, Naman Midtown - A Wing, Senapati Bapat Marg, Prabhadevi, Mumbai - 400 013, Maharashtra, India. For any complaints Email - grievances@samco.in Research Analysts -SEBI Reg.No.-INHO0O0005847.