Ambuja, NCL, India Cements seen favourably placed on charts; eye 13% upside

The price-to-moving averages hints at a favourable trend for India Cements; similarly, select technical factors augur well for cement stocks such as Ambuja Cements, Ramco Cements and NCL Industries.

Despite seasonal weakness and maintenance-related outages, India's cement producers reportedly delivered strong Q2 performance.  Brokerages highlighted that a stronger rural activity and on-going construction kept cement consumption buoyant. That apart, the year-on-year growth rates were aided by a low base, new capacities and a richer product mix, said analysts.  Going ahead, analysts expect the second half to remain strong, helped by post-monsoon recovery, steady private and public capex, and normalising construction activity. READ MORE  Meanwhile, as per the technical charts, these 4 cement stocks - Ambuja Cements, India Cements, Ramco Cements and NCL Industries look favourably placed and can gain up to 13 per cent from here. 

Here's a detailed technical outlook on these 4 cement stocks.

 

Ambuja Cements

Current Price: ₹547  Upside Potential: 11.5%  Support: ₹537  Resistance: ₹561; ₹576  Ambuja Cements stock is seen precariously poised, with the stock traded close to its key weekly trend line support at ₹537. As long as this support is held on a weekly closing basis, the stock can attempt a bounce back towards ₹610. Interim resistance can be expected around the 20-Day Moving Average at ₹561 and daily trend line hurdle at ₹576. 

 

India Cements

Current Price: ₹403  Upside Potential: 11.7%  Support: ₹396; ₹380  Resistance: ₹419  The price-to-moving averages action indicates a positive bias for India Cements stock, as the shorter-term moving averages are placed above the longer-term averages. The stock, however, faces an overhead resistance at ₹419; above which a spurt towards ₹450 seems likely. On the downside, the 20-DMA at ₹396 is likely to act as near-term support followed by the 100-DMA at ₹380. 

 

The Ramco Cements

Current Price: ₹1,013  Upside Potential: 13%  Support: ₹996; ₹960  Resistance: ₹1,060; ₹1,100  The Ramco Cements stock is seen testing the 200-DMA support at ₹996 in recent trading sessions; below which, a key support for the stock stands at ₹960, shows the weekly chart. On the upside, Ramco Cements can rally to ₹1,145, with interim resistance visible at ₹1,060 and ₹1,100 levels. 

 

NCL Industries

Current Price: ₹201  Upside Potential: 13%  Support: ₹201; ₹196; ₹189  Resistance: ₹211; ₹222  NCL Industries shares recently broke-out above the daily trend line resistance, and tested the 100-DMA on the upside. The short-term trend is likely to be favourable above ₹189, with interim support anticipated around ₹201 and ₹196. On the upside, sustained trade above ₹211 (100-DMA), can trigger an up move towards ₹227, with interim resistance likely around ₹222.