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The Orient Cement stock had gained 8 per cent, accompanied by good volume, last week and closed at ₹101.5. Investors with a medium-term perspective can buy the stock at current levels. Following an intermediate-term downtrend in the year 2018, the stock found support at ₹61 in early February this year.
Subsequently, the stock changed direction, triggered by positive divergence in the weekly relative strength index. Since then, it has been in a medium-term uptrend. While trending up, the stock had conclusively breached a key resistance at ₹75 in early March. It continued to trend up and surpassed the 200-day moving average in early April. It trades well above the 50- and 200-day moving averages. Short-term trend is also up for the stock.
The uptrend is backed by good volume. The daily relative strength index has re-entered bullish zone from the neutral region and the weekly RSI has entered the bullish zone after a prolonged time period. Both the daily and the weekly price rate of change indicators feature in the positive terrain, indicating buying interest. The medium-term outlook is bullish for Orient Cement and has the strength to continue the on-going uptrend in the ensuing weeks. The price targets are ₹115 and ₹120 with a minor pause at around ₹115. Traders a medium-term view can buy the stock with a stop-loss at ₹92.
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