Trading Strategy Balrampur Chini Mills

Balrampur Chini Mills Ltd. has broken the floor of the rising trend channel in the medium long term, which indicates a weaker initial rising rate. 

The stock is moving within a rectangle formation between support at 385 and resistance at 400. A decisive break through one of these levels indicates the new direction for the stock. 

The stock is testing support at rupee 383. This could give a positive reaction, but a downward breakthrough of rupee 383 means a negative signal. The stock is overall assessed as technically positive for the medium long term.

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Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar manufacturing companies in India. The company is a subsidiary of Balrampur Sugar Industries Limited and is engaged in the production of sugar, ethanol, and power. BCML operates several sugar factories in Uttar Pradesh, India and has a cane crushing capacity of around 76,500 TCD (tonnes of cane per day). The company is also involved in the production of bio-compost and organic farming. In addition to sugar production, the company also generates power through its co-generation power plants. Balrampur Chini has been in the sugar industry for over 70 years and is one of the leading sugar manufacturers in the country.

Ethanol blending is the process of mixing ethanol with gasoline or other fuels in order to reduce emissions and increase the utilization of renewable energy sources. In the sugar sector, ethanol is typically produced from sugarcane juice or molasses, a byproduct of sugar production.

The Indian government had set a target of achieving 10% ethanol blending with gasoline by 2022, and the sugar sector is a major contributor to this goal. Sugar mills in India produce surplus molasses during the sugarcane crushing season, which can be used to produce ethanol. The government provides various incentives and subsidies to sugar mills to encourage them to set up distilleries to produce ethanol.

The sugar sector in India has been facing challenges due to surplus production, low sugar prices, and mounting debt. Ethanol blending provides an additional source of revenue for sugar mills and helps to absorb surplus sugarcane. Additionally, it helps to reduce the dependence on imported oil and promote the use of clean energy.

Ethanol blending is also considered to be beneficial for the environment as it reduces emissions of greenhouse gases and air pollutants. It also helps to reduce the dependence on fossil fuels and promote the use of renewable energy sources.

The Indian government has implemented several policies and programs to promote ethanol blending, such as the National Biofuels Policy, which was launched in 2018. The policy aims to increase the production of biofuels and increase the blending of biofuels with gasoline and diesel. The government also provides various incentives and subsidies to sugar mills, distilleries, and other biofuel producers to encourage them to set up production units.

The Indian government has also introduced the Pradhan Mantri JI-VAN (Jaiv Indhan) Yojana, which aims to promote the use of biofuels in the country. The scheme provides financial assistance for the production of biofuels and aims to encourage the use of biofuels in the transportation sector.

India has also set a target of producing 20% ethanol blending with gasoline by 2030, as part of its commitment to the Paris Climate Agreement. The government is working to achieve this target by increasing the production of biofuels and encouraging the blending of biofuels with gasoline and diesel. The Indian sugar industry is expected to play a major role in meeting these blending targets through its ethanol production capacity.