Technical view by Nooresh

ACC Limited — Looks Interesting for long term.

For past two months had maintained the long view on Cements which have all gone up 10-15% against a falling index.

Now if we look into long term charts it shows a much more rosy picture.



  1. The stock is making a 3-4 year Inverted Head and Shoulders Pattern with a breakout point placed at 1150-1170.
  2. In the last 3-4 years the stock has faced resistance at 1150-1170 apart from a spike to 1200 + levels in the peak of 2008. Over the last 1 year we have already seen 3 attempts. Generally the stock takes a good 10-15% dip after such a hit but we are seeing the stock hold on closer to 1080-1100 mark indicating good strength.
  3. The stock has outperformed the benchmark indices in the current dip and is a good defensive stock in the Index with limited downside.
  4. The stock can be accumulated at 1100-1130 and any dips to 1050-1080. Stoploss to be kept at 1020 and a target price of 1300/1450 in the long term.

Investors may even look into midcap/smallcap cements as the next sector to watchout for on every dip and Valuations are attractive on midcap side. \

We maintain a strong long term view on ACC, Ambuja and Ultra Tech and Shree Cements … Will update more on specific levels soon.

Article by Nooresh Merani

Nooresh has written 2531 articles.

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{ 9 comments… add one }
  • Pranav October 24, 2011, 21:38

    Hello Nooresh,

    What do you make of L&T? Should one start doing a SIP? Any levels there?

    Also at what levels should one consider entering in ITC & HUL? I know HUL is one of your favorites. However do you have a range where one should start getting in?

    I am considering a long term horizon (at least 3-4 yrs) for all 3 of them.

    Thanks, Pranav.

    • nooresh October 24, 2011, 22:01


      LnT 1200 or lower looks interesting but dont expect major turnarounds.

      HUL 325/300 good entry points. ITC i would prefer to wait. Look into Godrej Inds, Aditya Birla Nuvo for 3-4 years trade.

  • bhanu October 25, 2011, 08:59

    hi nooresh,

    Saw you on CNBC, :-) quick question about Piramal Glass, it went to 132 and dipped? is it a buy, i have 100 at 144 /-

    • nooresh October 25, 2011, 14:05

      Hi Bhanu ,

      Piramal looks good for long term but may remain sideways as of now till markets dont firm up

  • vijaya October 25, 2011, 09:18

    what is the problem with jain irrigation

    • nooresh October 25, 2011, 14:04

      Hi Vijaya,

      Technically its weak. Fundamental issues came at 200 levels. Will get interesting below 100

  • hesh October 25, 2011, 09:37

    Mr. nooresh,
    as always all time excellent analysis we got every time. this time also interesting chart u posted with ASCENDING triangle with Inv. H&S.
    Who are long term investor in this stock will try to book profit but aftr checking by technically ACTUALLY THOSE MUST REMAIN HOLD FOR MORE GAIN!!! Is it right!!!
    I salute for such type of analysis.
    Thanks & expect same in FUTURE.
    He$H. . .

    • nooresh October 25, 2011, 14:04


      Thanks for your kind words Hesh :)

  • pratiek October 25, 2011, 14:48

    acc on fire great analysis sir


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