UltraTech, ACC: Price breakout suggests more upside for cement stocks

Shares of cement makers have done well at the bourses over the past few weeks after sector majors UltraTech Cement, ACC and Ambuja Cements reported good operational performance in the June quarter

ACC Ltd (ACC):  As the price approaches the 200-weekly moving average (WMA), which is at Rs 1,474 levels, the counter has started witnessing profit booking. The 200-WMA has become an immediate resistance and the next breakout appears to be above Rs 1,474 levels. That said, the overall trend looks promising as the Moving Average Convergence Divergence (MACD) has crossed the zero line in an upward direction, as per the weekly chart. The current price is trading above 200-day moving average (DMA), which signals a bullish sentiment, as per the daily chart. The supports are placed at Rs 1,385 and Rs 1,360 levels. CLICK HERE FOR THE CHART

UltraTech Cement Ltd (ULTRACEMCO): A breakout above its 200-DMA with strong volumes indicates an upward direction for this stock. Likewise, a consolidation breakout in the range of Rs 3,650 to Rs 3,950 has added strength to the positive sentiment. Any minor correction should see the stock bounce strongly from its support around the 200-DMA placed at Rs 3,936 levels. The counter may see a rally towards Rs 4,400 in the near term.  CLICK HERE FOR THE CHART

Ambuja Cements (AMBUJACEM): This counter is determined to cross the range of Rs 225 – Rs 226 levels. This range coincides with 200-WMA, placed at Rs 224 levels. The support stays at Rs 218 and Rs 210 levels. The overall trend suggests a rally moving towards Rs 235, if the resistance range of Rs 225 – Rs 226 gets conquered. The volumes have declined in the last few sessions as the Relative Strength Index (RSI) enters the overbought territory, as per the daily chart. CLICK HERE FOR THE CHART

The Grasim Industries Ltd (GRASIM): The counter's 200-DMA, situated at Rs 656 levels, has become a resistance for the uptrend. This is the second time that the price is witnessing profit booking/selling pressure as it gets near the moving average. The lower support stays at the 50-DMA located at Rs 608.50 levels. The trend shows strong upside bias as MACD manages to sustain above the zero line decisively. Going forward, If it manages to conquer 200-DMA, the upside may see Rs 720 levels. CLICK HERE FOR THE CHART

J.K. Cement Ltd (JKCEMENT): As this counter hit a new all-time high recently, the upside momentum has flourished. Till this counter trades above Rs 1,500 levels, the rally may move towards Rs 1,650 levels. The medium term closing basis support stays at Rs 1,450 levels, the outlook remains positive for the upside towards Rs 1,800 levels.  A “Golden Cross” has decisively given a breakout that may ensure further boost for buyers. CLICK HERE FOR THE CHART