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The Ramco Cements scrip gained 3.6 per cent with above average volume on Wednesday, breaching its immediate resistance at ₹344 levels. Investors with a short-term perspective can consider buying the stock at current levels. Since June 2014, the stock has been on a sideways consolidation phase in a wide band between ₹280 and ₹380. In late March 2015 and early May, the stock took support from the lower boundary at ₹280 and reversed higher. The stock conclusively breached its 50- and 200-day moving averages while trending upwards. A key immediate support at around ₹327 is also cushioning the stock.
The moving average convergence divergence indicator is trending upwards in line with the stock price, implying the bullish momentum is intact. The short-term outlook for the cement stock is bullish. It can extend its rally and reach ₹366 and then ₹373 in the upcoming trading sessions. Buy the stock with a stop-loss at ₹344.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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