India Cements (₹171.1)

The stock of India Cements fell 5 per cent with an above average volume on Tuesday, breaking below a key support level of ₹175. This fall gives traders with a short-term perspective an opportunity to sell the stock at current levels.

Key resistance in the band between ₹200 and ₹225 limited the stock’s up move in mid-May and again in mid-June this year. Subsequently, the stock changed direction triggered by negative divergence in the weekly indicators. Since then, the stock has been in a medium term downtrend. In mid-August the stock encountered resistance at ₹185 and resumed its downtrend. . It hovers well below its 21- and 50-day moving averages. The daily relative strength index is hovering in the bearish zone and the weekly RSI is on the brink of entering this zone from the neutral region. The daily and weekly price rate of change indicators are featuring in the negative territory implying selling interest.

The short-term outlook is bearish for the stock. It can extend its downtrend and reach the price targets of ₹164 and ₹161 levels in the near term. Traders can sell the stock with a stop-loss at ₹175.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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