Stock market today: On account of skyrocketing coffee prices due to demand-supply constraint, both coffee stocks and coffee future prices are surging. In the early morning trade session, Tata Coffee share price shot up around 5.50 per cent, Continental Coffee or CCL Products (India) stocks surged around 4 per cent, Coffee Day Enterprises or CCD shares added 2 per cent. According to stock market experts, this bull run in the coffee stocks may further continue as this demand-supply constraint is expected to continue on crop failure in Brazil and Vietnam.
Speaking on intraday trading tips and reason for coffee stocks skyrocketing at Indian markets; Santosh Meena, Head of Research at Swastika Investmart Ltd said, “Coffee stocks are buzzing today after Robusta coffee futures on ICE hit a four-year peak on Monday on tightening supplies, while London cocoa futures hit new six-month highs. The outlook for coffee prices is still bullish both globally and domestically on the back of supply issues.”
Standing in sync with Santosh Meena’s views; Avinash Gorakshkar, Head of Research at Profitmart securities said, “The bull run in coffee stocks is expected to continue further as coffee production in Brazil and Vietnam has gone down drastically due to the crop failure in those countries. This crop failure is going to have short to mid-term impact on the coffee supply and hence some of the quality coffee stocks may continue to give upside movement in short to medium-term.”
Asked about the quality coffee stocks that Indian stock market investors can buy today Avinash Gorakshkar of Profitmart Securities said, “Tata Coffee and CCL Products (India) Limited are such stocks that one can buy and hold for short to medium-term.”
On coffee stocks to buy today, Santosh Meena of Swastika Investmart said, “Both Technically and fundamentally, Tata coffee and CCL Products look strong where Tata coffee has an immediate resistance zone of ₹215 to ₹220. Above this, we can expect a move towards ₹245 level. On the downside, ₹200 to ₹195 is a critical demand zone, and only below this, we can expect any weakness.
CCL Products may continue to outperform because of its strong financials where ₹415 to ₹430 is an immediate resistance zone. Above this, it is likely to head towards 500 levels while ₹400 to ₹385 is an immediate and strong demand zone.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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