Ambuja Cements, UltraTech, India Cements: Trading strategies for these cement stocks

Domestic equity markets posted decent gains on Tuesday, thanks to a healthy fag-end buying. The  BSE Sensex gained 204.16 points, or 0.31 per cent, to end at 66,174.20. The NSE Nifty gained about 95 points, or 0.48 per cent, to end the day at 19,889.70.

A few cement stocks namely Ambuja Cements Ltd, UltraTech Cement Ltd and India Cements Ltd are likely to be in focus today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:Ambuja Cements | Resistance: Rs 450-470 | Support: Rs 400 Ambuja Cements has witnessed a breakout of a triangle formation with strong volumes. It has found a strong demand zone at Rs 400 level. In the last trading session, the stock has broken a trend-line and given a close above Rs 430 level. The overall structure of the stock looks good, as it is trading its key moving averages. The momentum indicator RSI (relative strength index) is also positively poised whereas MACD (moving average convergence divergence) is supporting the current strength. On the upper side, the Rs 450 level is an immediate resistance; above this, one can expect a big move till Rs 470 in the shorter time frame. On the downside, the Rs 400 level is the demand zone for any correction.UltraTech Cement | Resistance: Rs 8,900-9,000 | Support: Rs 8,400 UltraTech Cement  has witnessed a breakout of a triangle formation with huge volumes. But after reaching their all-time high levels of Rs 8,869, it has experienced a profit booking. The stock retested its previous breakout level at Rs 8,545, and it started a new leg of rally towards Rs 9,000. The overall structure of the stock looks good, as it is trading above all its key moving averages. On the upper side, Rs 8,900 is an immediate resistance; above this, one can expect a big move till Rs 9,000 in the shorter time frame. On the downside, the Rs 8400 level is the demand zone for any correction. The momentum indicator RSI is positively poised whereas the MACD is supporting the current strength.India Cements | Resistance: Rs 240-255 | Support: Rs 215 India Cements has witnessed a breakout of an Inverse Head-and-Shoulders formation on the daily chart with strong volumes. It is bottoming out from the 200-DMA at around Rs 210. The structure of the counter looks lucrative, as it is trading above its key moving averages. The momentum indicators RSI and MACD are positively placed. On the upside, Rs 240 is the important psychological resistance level, above which one can expect to see Rs 255 level in the near term. On the downside, the Rs 215 level offers a support, below which we can expect the Rs 210 level.  

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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