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How Cement Stocks are Looking on the Charts

Nov 15, 2022

The cement sector is in focus ever since the consolidation began with Adani Group buying Ambuja Cements and ACC.

Ambuja Cements is trading at an all-time high while other cement stocks are catching up with the bullish trend.

To analyse the trend of the cement sector, we created a marketcap weighted cement index with the stocks having a marketcap of minimum Rs 50 bn (Rs 5,000 crore).

Marketcap Weighted Cement Index - Weekly Chart

 

Since its correction in sync with the benchmark indices, Sensex and Nifty, the cement sector has seen a reversal from the demand zone (marked in red).

The resistance turned into a support at 5,000 and the trend turned northwards.

The index is heading higher to break out of the bullish head and shoulder pattern, confirming the cement sector's medium-term bottom. The current market price of the index is 6,730 while the breakout is at 7,100.

I recently recorded a video explaining how to profit from the sector rotation as a trader.

Do watch if you think it's important to hop from one sector to another at the right time.

UltraTech Cement and Shree Cement are the top gainers today while Birla Corp and Heidelberg Cement are trading 1% lower.

If you're interested in being part of my charting journey as I share how to create wealth from the profitable trade setups, join my telegram channel - Fast Profits Daily. You'll get access to the best trading ideas in the stock market.

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Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

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