ACC, Ambuja Cements, UltraTech: Three cement stocks that can rally 10%

Cement stocks are showing a positive reversal even as the frontline benchmark indices remain range-bound. In the last four sessions, the S&P BSE Sensex has been trading in the range of 39,650 – 38,870 and the Nifty 50 between 10,850 – 10,620 levels. Both indices are trading around 3 per cent lower than their respective lifetime high.
 
Looking at the overall formation on charts, the select cement counters are showing a buying momentum. ACC, Ambuja Cement, and UltraTech Cement are showing likelyhood of a further upside. If indices do trend upward, then these stocks can even show a rise of 10 per cent each.

 
UltraTech Cement Ltd (ULTRACEMCO): Despite the recent correction, the stock remained resilient and did not breach its 50-day moving average convincingly, as per daily chart. Although, it did breach Rs 4,469 (50 DMA) at first and even closed below it, the selling pressure never followed through. On the contrary, it revived and crossed Rs 4,570 levels, which is its trend-line resistance. At the current levels, it is trading above the rising 50 DMA at Rs 4,520 levels, suggesting stability and there is a chance that the counter may even hit Rs 4,750 levels going ahead. The MACD (Moving average convergence and divergence) has crossed zero line upward after the trend-line breakout.  CLICK HERE FOR DETAILED CHART VIEW

 

ACC Ltd (ACC): The stock ahs been resisting its 100 DMA at Rs 1,552 levels. However, the mild correction towards Rs 1,500 has seen buying come in. A rally above 100 DMA will not only open doors for the stock to reach Rs 1,620, its 50 DMA, but will push it towards the next resistance of Rs 1,680 – 1,700. This may take time as weekly formation depicts negative trend for the medium-term. That said, any bounce may trigger buying opportunities. The 200 DMA is currently placed at Rs 1,511, an immediate support as per chart. CLICK HERE FOR DETAILED CHART VIEW

 
Ambuja Cements (AMBUJACEM): A clear formation of a double-bottom in a downward trend indicates reversal and possibility of an upside. It did breakout above the neckline of Rs 215, heading towards Rs 224 and Rs 229. The support stays at Rs 206.50 and any mild correction may be seen as a buying opportunity, as per daily chart. The RSI (Relative Strength Index) has seen a reversal near oversold region of 30 level. CLICK HERE FOR DETAILED CHART VIEW