Nifty Infra is pushing up against its long-term resistance. While the index has halted at these levels before, current market rally may lead to a breakout soon, going by the bullish momentum we’re seeing in the index.
We’ve been tracking the cement space, and while earlier there were limited actionable trades, recent buying interest grabbed our attention again. We decided to dig a little deeper and found some actionable ideas.
Let’s take a look at this space and see what the charts have to say.
Nifty Infrastructure is taking another shot at its long-term resistance. With RSI alluding to bullish momentum and price moving higher, we could witness a good move in this sector going forward.
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Since we wanted to focus on Cement stocks, we created an equally weighted custom index dedicated to this space- ASC Cement Index. The custom index has taken support from a level with a lot of price memory and bounced back. This bodes well for the index constituents.
Relative to Nifty Infra as well, the custom index is holding above its two-year support.
Now let’s take a look at some actionable ideas at current levels that look attractive on the long side for the next few weeks and months.
First up on our list is UltraTech Cement. Price has consolidated above its all-time highs with RSI indicating strong bullish momentum and 200-DMA inching higher, indicating growing strength. We are bullish with a risk management level of 4,960 for a target of 6,025.
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