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Should you bet on cement stocks? Here's what technical charts indicate

Although cement stocks are trading lower from their respective lifetime highs, the trend is expected to change in the coming sessions

Avdhut Bagkar  |  Mumbai 

dalmia cement

The S&P BSE Sensex has scaled a new high, hitting 39,000 level. Several sectors have emerged as positive contenders for trading; however, the cement sector is anticipating strong revival compared to its counterparts. Although cement stocks are trading lower from their respective lifetime highs, the trend is expected to change in the coming sessions.

Here's a look at what technical indicators suggest for select cement stocks -

UltraTech Cement: The stock is currently trading in the range of Rs 4,170 – Rs 4,140. The high of “Head and Shoulder formation” resides at Rs 4,147.95, as per the daily chart. A move beyond the same may eventually end the weakening sentiment. A major breakout above Rs 4,170 will apparently see Rs 4,410 levels. The support comes in at Rs 3830, its 100-day moving average (DMA). CLICK HERE TO VIEW CHART

JK Cement: The stock is not only trading above the 200-weekly exponential moving average, but has shown sustainable rally above 200-DMA located at Rs 758. The market breadth depicts possible golden crossover of 200-DMA with 100-DMA and 50-DMA. It has a proportionate volume accumulation in the range of Rs 800 – Rs 850. The immediate support stays at Rs 800 with a potential rally towards Rs 1,020 and Rs 1,060 levels. CLICK HERE TO VIEW CHART

India Cements: The stock has a stiff resistance at Rs 122, as per the chart. However, the Flag pattern breakout on the daily chart is confident of absorbing the selling pressure, a favorable move above Rs 122 will trigger a new trend heading towards Rs 129 and Rs 135. The reliable support comes in at Rs 95; an immediate fall at Rs 105. The technical oscillator RSI (Relative Strength Index) is trading in an overbought territory; however, the price itself is showing a strengthening upside. CLICK HERE TO VIEW CHART

Ramco Cements: After a strong consolidation in the range of Rs 670 – Rs 550, it strongly rallied towards Rs 750 levels. Currently, the stock is catching up a new trend absorbing selling pressure arising above Rs 760. It’s an obvious move towards the next pressure range of Rs 820 – Rs 840. Luckily, it has made a positive crossover of 50-DMA with 200-DMA forging more optimistic sentiment. The support falls at Rs 700, a dip towards Rs 725 may further see buying opportunities. CLICK HERE TO VIEW CHART

JK Lakshmi Cement: The stock needs to be on the radar, as it revolves around 200 weekly moving averages (WMA) placed at Rs 367. The weekly chart shows “Inverse Head and Shoulder pattern” with a major breakout above Rs 340 level. However, it needs to foreshadow the volume growth or show steady momentum above 200WMA. The current strength indicates support around Rs 335, incorporating a move towards Rs 400 and Rs 422 levels. CLICK HERE TO VIEW CHART

First Published: Mon, April 01 2019. 13:34 IST
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