Technical Outlook

* India Cement had a prolonged downtrend for nearly six years and it retraced from the record high of 332.60 to 43.05 in 2013, followed by consolidation.

* It formed a distorted Head and Shoulder pattern (which is bullish reversal pattern in nature) on the monthly chart during that consolidation phase and witnessed breakout from the same in August 2016. It surged strongly thereafter and doubled i.e. roughly 100 to 215 levels in the next three quarters. However, it couldn’t sustain at those levels and witnessed a gradual decline and again reached to double-digit mark in the next two years.

* It recovered sharply in February 2020 from the low of roughly 70 levels, after spending nearly six months in a range. And, after testing the hurdle around 140 levels, it has been witnessing profit taking for the last two months and currently hovering around the support zone of the medium-term moving average (100 EMA) on the daily chart. Indications are in the favor of marginal consolidation around the current levels, followed by a strong rebound. Traders shouldn’t miss this opportunity and accumulate gradually, by buying at CMP (116.85) and adding more on dips around 109. We recommend maintaining closing stop loss at 98 for the upside potential for 155 levels.

Buy India Cements Ltd @ 109-117 2-3 Months CMP 116.86 TGT 155 SL 98

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Above views are of the author and not of the website kindly read disclaimer