After rising up to 11% last wk, will road sector stocks see profit booking?

Last week witnessed a decent rally in the road sector stocks with the scrips surging up to over 11 per cent. This was on account of Finance Minister’s announcement to invest Rs 102 trillion in the infrastructure sector by fiscal 2025. Among individual names, ITD Cementation closed 14.50 per cent higher and KNR Constructions,  along with Sadbhav Engineering, IRB Infrastructure settled around 11.50 per cent up. Ashoka Buildcon gained 8.65 per cent.

Here's a look at what technical charts indicate for these stocks in the coming sessions -

 

ITD Cementation India Ltd (ITDCEM): The counter is trading below 200-day moving average (DMA) and 100-DMA since June 2019 and has corrected over 50 per cent. As it managed to cross 100-DMA last week, it needs to keep the momentum with a strong close above the moving average. Technically, a three days' close above Rs 57,35, which is its 100-DMA, may trigger a rally towards Rs 67 and then Rs 72 levels. The support remains at Rs 53, which is slightly below the 50-DMA. The Moving Average Convergence Divergence (MACD) is rising above the zero line, a sign of a positive trend. CLICK HERE FOR THE CHART

 

KNR Constructions Ltd (KNRCON): This counter is trading above 200-weekly moving average (WMA) since June 2014. Last time, when the stock fell around 200 WMA in October 2018 and August 2019, the reversal with strong buying may be seen.  A positive crossover of 50-WMA with 100-WMA should boost the price upward towards Rs 300 levels. The last week volumes with a positive close, is above last 85 weekly sessions. The immediate support remains at Rs 228 as per daily chart. CLICK HERE FOR THE CHART

 

Sadbhav Engineering Ltd (SADBHAV): On Friday, the counter resisted at 100-DMA placed at Rs 128.20 level. The positive reversal was seen around Rs 103 with stock volumes of 13 lakhs, a couple of sessions ago. Overall, the trend looks positive with efforts being made to cross Rs 128 – Rs 129 levels. Upon this, a major rally towards Rs 140 may be expected. CLICK HERE FOR THE CHART

 

IRB Infrastructure Developers Ltd (IRB): This is the second time when the counter has crossed 100 DMA since June 2019; still, the counter needs to decisively close above Rs 76.30 to rise toward Rs 87.40, which is 200- DMA. A “Double Bottom” formation with a breakout at Rs 74 has also helped to climb higher. CLICK HERE FOR THE CHART

 

Ashoka Buildcon Ltd (ASHOKA): The overall trend remains positive as the counter trades above 50-DMA and 100-DMA convincingly. As the Relative Strength Index (RSI) enters overbought region, one can see profit-booking; however MACD crossing zero line upward should see regaining of buying momentum. The support remains at Rs 100 levels.  CLICK HERE FOR THE CHART