India Cements

We recommend a sell in India Cements stock from a short-term perspective. It is apparent from the charts of India Cements that it was on a modest medium-term uptrend from its 52-week low of Rs 68, touched in late October. However, the stock encountered twin resistance around Rs 115 (July low and the long-term down trendline) and resumed its long-term downtrend. Moreover, the stock has been on a long-term downtrend from its December 2007 peak of Rs 333 level. Witnessing selling pressure at Rs 115, the stock began to decline. On December 23, the stock tumbled 7 per cent with moderate volume. The daily relative strength index (RSI) entered the neutral region from the bullish zone and weekly RSI has re-entered the bearish zone. Our short-term forecast is negative for the stock. We anticipate the stock’s decline to continue until it hits our price target of Rs 84 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 99.