Today's Pick

India Cements (Rs 76.2) - Buy

| Updated on: Sep 21, 2011
image caption

Investors with short-term perspective can consider buying the stock of India Cements. It is evident from the charts that its long-term trend has been down from its June 2009 peak of Rs 180. However, following a medium-term downtrend from this April high at Rs 105, the stock found support at around Rs 62 in early August.

Subsequently, the stock reversed direction triggered by prolonged positive divergence in weekly relative strength index and daily moving average convergence divergence indicator. Retesting the support at Rs 62, the stock bounced up in late August. Short-term trend is up for the stock. On Wednesday, the stock spiked 5.7 per cent with above average volumes, breaking through its immediate resistance at around Rs 74.

It is hovering well above its 21- and 50-day moving averages. Daily momentum indicators have entered into the bullish zone and weekly indicators have entered into the neutral region. We are bullish on the counter from a short-term horizon. We expect its up move to continue until it hits our price target of Rs 78.5 or Rs 81 in the days ahead. Traders with short-term perspective can buy it with stop-loss at Rs 74.

Published on September 21, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you