Cement(ing) Exceeding Expectations

JC Parets
April 1, 2021

We published a post talking about how Chemicals were outperforming in the current market scenario. Another such group of stocks that have been performing well, is Cements. We published a post dedicated to Cement in December 2020, but it seems like the move has only started! More names are getting added to the 'strong' column so we thought we could revisit this sector again.

Are there any other stocks that have undergone any structural changes? Let's find out.

ACC has been an underperformer in this sector for quite some time now where we've cautiously put this name on the 'watch list'. It seems like the wait might just be over!

The price has finally broken out above the all-time high near 1,870 and looks ready for another leg of the rally. This is a four-year base breakout as the indicator continues to hovers around bullish momentum territory.

We are bullish above the risk management level of 1,870 with a target near 2,470.

Click on chart to enlarge view.

Ambuja Cement is up next. The first thing that pops in this chart is the long-term base breakout that can be seen in the price. We're looking at a six-year base breakout. And what do they always say? The bigger the base, the higher in space!

The price has been halting at the same level all these years and has finally managed to absorb all the overhead supply at this zone. This is a big sign of strength in the stock, not to mention the indicator continues to hold on tight to bullish momentum.

We are positive above the level of 291 with a target near 390.

Birla Corporation is another stock that has shown strength in moving past a long-term resistance. The price has moved above 924 and looks good for a target of 1,225 followed by 1,265. Another big-base breakout can be observed here. This is something we're observing in stocks that are doing well, they're moving past long-term resistances and breaking out of big bases. This follow-through can be seen in inherently strong stocks.

J.K.Lakshmi Cement moved past its resistance of 400 recently and has been consolidating above the same level which has now turned into crucial support. As the price sustains above the risk management level of 400, we're tracking a target close to 535 in the weeks ahead.

It is positive that the price is sustaining above a level that has had a very good price memory going back almost six years!

Last on the list today is Prism Johnson. The common theme among all these stocks is that they're participating in their sector-specific rally now and are breaking out of big bases! So here we have a four-year base breakout where the price has moved past 125.

We are bullish above the risk management level of 125 with a target near 160.

With certain sectors outperforming the others, it becomes important to remain invested in the names that are expected to perform well going forward. As the choppy move continues to play out in the broader market, we are focusing more on sectors and groups that are outperforming the market.

Cement is one such space that has generated positive signals over the past couple of weeks in stocks that have remained relatively sluggish.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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