Dalmia Cement

Investors with medium-term perspective can consider buying the stock of Dalmia Cement (Bharat).

A key support around Rs 70 arrested the stock's decline from an all-time high of Rs 620 marked in December 2007.

In October 2008, it found support and consolidated sideways in the range of Rs 70 and Rs 100 for more than six months forming a strong base before rallying higher. Since then, the stock has been on a longer term uptrend. Though, the stock is facing a resistance around Rs 225, the weekly chart pattern is promising and the stock has the potential to surpass this resistance. It has a key support at Rs 170.

Both the daily and weekly relative strength indices are featuring in the positive zone. Besides, the daily as well as weekly moving average convergence and divergence indicators have signalled a buy in the recent times and are hovering in the positive territory. The stock is trading way above its 21 and 50-day moving averages.

Taking into consideration the fact that the stock's long-term trend is intact and the bullish weekly pattern, we believe that it has the potential of continuing its upward journey in the medium-term. Target for medium-term is at Rs 260, with minor pause around Rs 235. Investors with medium-term perspective can consider buying the stock while maintaining Rs 190 as stop-loss. Short-term traders can buy with a target of Rs 235 and Rs 203 as stop-loss.

Follow up- Consolidated Construction Consortium

(Rs 80.3)

The stock declined Rs 7 or 8 per cent last week declining below its 21 and 50-day moving averages.

However, the stock is trading above the stop-loss indicated the previous week. Avoid initiating fresh positions in this counter.

A decline below our stop would negate the bullish outlook.

via BL