Technical Analysis of Indian Equities by Nooresh

CEMENTS —–The next sector to watchout for ??

Over the last 3-4 months there has been specific sectors which have outperformed the Index.

 

We had earlier initiated a view Telecom stocks like Idea at 70, Bharti at 360-380.Later the focus shifted to Auto – Bajaj Auto at 1500. Now it seems Cements will be the next sector to watchout for.

 

We have been maintaining out long call on Cement stocks since last 1-2 months.

ACC was recommended at 1020 and Guj Ambuja around 130-135.

Yesterday had mentioned about ACC.

 

Posting the other two charts which are interesting. Also have been recommending Grasim from lower levels.

We are also looking into Midcap/SmallCap Cements. Logically this sector is less affected by Global Concerns.

 

TECHNICAL ANALYSIS TRAINING MUMBAI on NOVEMBER 5-6

For more details contact Kazim 09821237002, Asif 09833666151. 

 

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è The stock is forming a huge Inverted Head and Shoulders which gives a target projection of 1400-1500 + over the long term.

è Multiple attempts have been made at the resistance band of 1150-1180 over the last 1 year. Considering the fact that it has attempted 3-4 times already and is making higher bottoms indicates the stock may breakout above 1180 over the next few months.

è The stock is trading above all leading moving averages in a market which is trading way below leading moving averages shows relative strength for the stock.

è Strong supports are placed at 1050 levels and any dips closer to that should be a point to add more to the stock. Momentum will be seen in the stock once it starts closing above 1150-1180.

è One can accumulate the stock at 1140/1050 with a closing stoploss of 1010 and a long term target of 1300-1500.

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è The stock is forming a huge cup and handle pattern which gives a minimum target implication of 180.

è Multiple attempts have been made at the resistance band of 155-160 over the last 3 years. In the last 1 year it has already made 3-4 attempts at that resistance levels indicates a very high probability of it being taken of and the stock going into uncharted territory.

è The stock is trading above all leading moving averages in a market which is trading way below leading moving averages shows relative strength for the stock. So it becomes a very good defensive portfolio pick.

è Dips to 150/143 should be used to accumulate with a stoploss of 136 on closing basis and long term target of 180-200.

Article by Nooresh Merani

Nooresh has written 2613 articles.

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{ 6 comments… add one }
  • pratiek October 25, 2011, 19:55

    hellow sir good analysis and happy diwali and happy new year. Have a prosperous life a head. sir which moving avg u r using and works accordingly to the price plz reply.

    Reply
    • nooresh October 25, 2011, 23:23

      Hi pratiek,

      Cant disclose the ones we use.

      But 50 and 200 are the basics.

      Reply
  • Pranav October 25, 2011, 20:23

    Hello Nooresh,

    Does Prism Cement look good? I am holding it since over 3 yrs at about 72 levels. It is languishing at 40 levels. I haven’t averaged it. Do you think i should average out at this level to at least get my money back if it goes up from here?

    Thanks so much for all your valuable responses.

    Regards.
    Pranav.

    Reply
    • nooresh October 25, 2011, 23:22

      Hi Pranav,

      I am getting bullish on cements so would suggest you to average 🙂

      Me also looking into midcap cements like Prism Heidelberg mangalam

      Reply
      • Pranav October 26, 2011, 01:26

        Thank you so much Nooresh. Always appreciate your quick response.

        Regards. Pranav.

        Reply
  • venkatesh October 26, 2011, 07:16

    Sir India cements is one more which is one of the largest producers in south india. I already have a holding in it. Do u think i should average it????

    Reply

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