Comments
We recommend a buy in the stock of JK Lakshmi Cement from a short-term perspective. It is apparent from the charts of the stock that since peaking out from its 52-week high of Rs 171 in early January, the stock was on a medium-term downtrend until it found support at around Rs 86 in early April. Subsequently, the stock changed direction triggered by positive divergence in daily relative strength index and price rate of change indicators. Since early April, the stock has been on a short-term uptrend. In late May, the stock decisively breached its 21- and 50-day moving averages and is hovering well above them.
We notice formation of an ascending triangle pattern with horizontal line at Rs 113. On Monday, the stock emphatically broke out of this horizontal line by gaining 7 per cent with above average volume. The daily moving average convergence divergence indicator is featuring in the positive territory indicating upward momentum.
Our short-term outlook on the stock is bullish. We expect its rally to continue and reach our price target of Rs 120.5 or Rs 123 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 113.2 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.