In the past one month; ULTRACEMCO has rallied from a low of Rs 5,630 towards the recent high of Rs 6,900 without any meaningful correction. The stock is now stuck again at the previous breakdown zone and also the placement of 200-day moving average. Thus there is possibility of some profit booking in the coming week. Traders are advised to sell the stock in the range of Rs 6,730 - Rs 6,770 with a stop loss of Rs 6,950 for the downside potential target of Rs 6,400 in the coming 2 to 3 weeks.
The long-term chart of WELCORP depicts that the stock is on the verge of a major range breakout above Rs 214 mark. The stock has never crossed this resistance since more than a decade. A comparatively smaller breakout above Rs 206 level indicates that the stock is poised to rip off the hurdle of Rs 214 with an ease. Thus; one can accumulate the stock in the range of RS 211 - 205 with a stop loss of Rs 190 for an upside target of Rs 240 in the coming 1 – 2 months.
(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal.)
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