Allied Blenders rises 6% on strong investor buying

Allied Blenders and Distillers rises 6% as large investors buy stake Allied Blenders and Distillers Limited is trading around 6% higher today even though the overall market is under pressure. The main reason is buying by large investors. SBI Mutual Fund bought around 34 lakh shares, while Abu Dhabi Investment Authority bought more than 15 lakh shares at an average price of around ₹650. This buying came after promoter Bina Kishore Chhabria sold nearly 2% stake in the company for about ₹357 crore. There are also some positive business updates. The company recently received a licence in Telangana to manufacture malt spirit, which can help in-house sourcing and support its premium brands. It has also approved an investment of up to ₹115 crore for a new malt distillery in Maharashtra. Outlook: The chart is looking strong. The stock is above the 10, 20, 50, 100 and 200-day moving averages. Today it moved above the recent ₹680–690 zone and touched ₹704. RSI is around 72, so the stock has entered an overbought area and some profit booking cannot be ruled out. MACD is positive and improving. My View: The immediate trigger is the buying by large investors, while the recent business updates also support the positive sentiment. If the stock sustains above ₹700, the next move can remain positive, but after a 6% rise, some consolidation or profit booking is possible. Disclosure: I or my family don’t have any financial interest in the stock.