Technical Analysis

HeidelbergCement India (₹193.3): Buy

Yoganand D BL Research Bureau | Updated on January 09, 2020 Published on January 09, 2020

The stock of HeidelbergCement India has been in a short-term uptrend since taking support at ₹174 in mid-December 2019. Triggered by positive divergence in the daily relative strength index, the stock changed direction and ended an intermediate-term downtrend that began from the 52-week high of ₹217.6 in May 2019.

On Wednesday, the stock gained 3.7 per cent accompanied by extraordinary volume, breaking above a key resistance level of ₹185 and the 200-DMA. The stock trades well above its 21- and 50-DMAs also. There has been an increase in daily volume over the past two trading sessions.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is heading towards the bullish zone in the neutral region. Further, both the daily and the weekly price rate of change indicators feature in the positive terrain implying buying interest.

The short-term outlook is bullish for HeidelbergCement. It can continue to trend upwards and reach the price targets of ₹201 and ₹205 in the upcoming sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at ₹189.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

Published on January 09, 2020
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