Investors with a short-term horizon and contrarian view can buy the stock of India Cements at current levels. The stock’s medium-term downtrend got arrested in late August this year at a 52-week low of ₹67.9. Subsequently, the stock took support from around ₹70 and reversed direction. Since then, it has been on a short-term uptrend.
After a corrective decline, the stock found support at ₹78 in early October and has been on a sideways movement. On Wednesday, the stock gained 4 per cent accompanied by extraordinary volume, breaching its 21- and 50-day moving averages. With this rally, the stock is likely to resume the short-term uptrend.
Both the daily and the weekly relative strength indices are featuring in the neutral region with an upward bias. Moreover, the daily price rate of change indicator has entered the positive terrain implying buying interest.
The stock has the potential to extend the uptrend and reach the price targets of ₹86 and ₹88 in the upcoming trading sessions. Traders can buy with a stop-loss at ₹80.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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