Cement Stocks: Showing Positive Signals

Updated: Jun 30 2002, 05:30am hrs
The old economy stocks continue to exhibit strength as stocks from the steel, automobile, tea, textiles and now the cement sectors have been outperforming the indices. The PSU stocks have been taking a breather after the strong rise, which we saw, in the past few months. The cement sector was the one, which had not participated in the past few months and the stocks in this sector were in no mood to break down. On Friday, we saw stocks from this sector breaking out of their small bases, which they had made and have gone into a fresh intermediate uptrend. This move seen on Friday will give traders an opportunity to get into this sector in the coming week. Today we will take a look at the cement stocks and see how these stocks are performing.

ACC

ACC has recently been exhibiting descending intermediate tops and ascending intermediate bottoms indicating that the major trend of the stock is sideways. If the current intermediate uptrend takes the stock above its earlier intermediate top of 180, the major trend of the stock will turn up. The relative strength line of the stock has turned bullish but there is still not sufficient rise in trading volume. Once strong improvement in volumes is seen, we are likely to soon see higher levels in the stock.

The weekly momentum indicators for the stock have also signaled a buy leading support to the upward move. Traders can look out for long positions in the stock on Monday. These long positions can be shifted to investments if the stock is able to cross 180 levels in the current intermediate uptrend.

Gujarat Ambuja

Gujarat Ambuja has been taking a support at its 30 WMA and is moving sideways in the intermediate term. The stock will go into a fresh intermediate uptrend on a close above 205 and will give traders and investors an opportunity to get into the stock. The weekly MACD histogram has been exhibiting a positive divergence indicating that the bears are not able to take the stock lower and once the bulls take over, the stock will soon exhibit higher levels. The relative strength line for the stock is bullish and has already started moving higher indicating that the stock is poised to move higher soon. Keep a close watch on the stock in the next week and get into the stock as soon as it goes into a fresh intermediate uptrend.

Larsen & Toubro

The major trend of Larsen & Toubro is down as it has been exhibiting descending intermediate tops and bottoms. The stock went into a fresh intermediate uptrend on Friday and if the current intermediate uptrend is able to take the stock above its earlier intermediate top of 219.10, the major trend of the stock will turn up. The relative strength line is already very close to its zero line and will soon move above it. Thus traders can get into the stock at the present level and shift this trading positions into investments if the stock moves past 219.10 in the current intermediate uptrend. The weekly momentum indicators for the stock have turned up which is a positive sign.