Praj

Praj industries

A biofuel manufacturing company which manufactures ethanol and other bio fuels and also has operations in breweries.

The stock has closed above its 20 day high today as well as above its 50 DMA, the last 10 days average volumes have been three times the last 30 day average volumes. The stock faces strong resistance at 85-84 region as 85 is the 100 dma mark and 84 is the 50% retracement of the recent fall and also the 23.6% retracement of the fall from all time highs. Above 85 the stock can test 90 and then 94 mark.

The support for this stock comes near 78 below which it will go weak, so a close above 78 will be a stop loss for any trader who plans to take long in this stock. The ideal time to go long is on a close above 85 for a target of 90 and then 94.

Now that the petrol price has been deregulated the product of this company i.e. ethanol and bio fuel will be in demand as oil marketing companies will blend their fuel with ethanol to make them more competitive in the market.