India Cements (₹171.1)
The stock of India Cements fell 5 per cent with 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 upmove in mid-May and again in midJune 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. . It hovers well below its 21- and 50-DMAs. 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 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 stop-loss at ₹175.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)