ACC, Ambuja Cements, JK Lakshmi Cement – invest at these levels to MAXIMISE gains, expert says
Cement sector was in focus on Friday with stocks like ACC, Ambuja Cements and JK Lakshmi Cement seen in action. While ACC achieved a 52-week high in the intraday trade, Ambuja Cements and JK Laxmi stocks not only attained their yearly highs but also traded in large volumes on the exchanges. Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking is bullish on this sector and said that the outlook is positive in the near to medium term.
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Stocks to Buy – ACC: This stock today ended at Rs 1954, down by over Rs 27 or 1.4 per cent on the NSE. This stock achieved levels around 2022 – 52-week high - on the intraday basis. Jain said that ACC stock has a strong support level at 1850 which was also its breakout level before a fresh rally started. ACC stock should be bought around Rs 1900, which makes the risk-to-reward ratio favourable. He put the stop-loss on ACC stock at Rs 1850 while the target price is pegged at between Rs 2100 and Rs 2200.
Stocks to Buy – Ambuja Cements: This stock today ended at Rs 315.60, down by over Rs 4 or 1.2 per cent on the NSE. This stock achieved levels around 329.90 – 52-week high - on the intraday basis. Jain said that Ambuja Cements stock has similar chart structure as of ACC.
He said that a strong support level at Rs 290 exists for this stock, which was also its multi-year breakout level before a fresh rally started. Those who have this stock should continue holding it, he said. Right levels to take fresh positions in Ambuja Cements stock is in between Rs 300 and Rs 310, which makes the risk-to-reward ratio favourable. He puts the stop-loss at Rs 290 while the short term target price between Rs 350 and Rs 380. The positional medium term target price for Ambuja Cements is Rs 400, he said.
Stocks to Buy – JK Lakshmi Cement: This stock was trading at Rs 442.40, up by over Rs 2.8 or almost 0.6 per cent on the BSE. This stock achieved levels around Rs 467 - 52-week high - on the intraday basis. This stock has a support at Rs 390 which was also a breakout level, the AVP said. He said that this should be taken as a stop-loss level.
JK Lakshmi Cement has multiple hurdles. The first resistance level is at Rs 485. Once this level is crossed a further upside will open in it. Any fresh positions in JK Lakshmi Cement should be made between Rs 420 and Rs 430, which maximises the risk-to-reward ratio, he further said.
He also had a word of caution on JK Lakshmi Cement. He said that the stock is volatile and has big price movements.
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