Trending stock: India Cements Limited

Since yesterday’s low of Rs 219.75, the stock has gained nearly 5% and recorded huge volume during the process.

India Cements Limited is a cement company. It is one of the strong growing midcap cement companies in India. The cement sector is quite competitive in India and the company has been able to generate decent revenues and profits. The foreign portfolio investors have constantly raised their stake in the company in recent quarters. The stock is in focus today and has surged nearly 3%

It opened with a decent gap-up but felt some selling pressure. However, strong buying interest at lower levels has propelled the stock higher and has gained over 3% since its day’s low of Rs 223.85. Since yesterday’s low of Rs 219.75, it has gained nearly 5% and recorded huge volumes during the process. The price structure of the stock is quite bullish considering that it trades above all the key short term and long term moving averages.

Along with its strong price structure, several technical indicators have their pointers turn towards bullishness. The 14-period daily RSI lies in the bullish territory and points northwards. The MACD histogram has risen steadily over the past few days and shows good momentum in the stock. Meanwhile, the ADX is below 20 but points upwards, which is an early indication of an uptrend. These technical parameters are validated by the above-average volume recorded recently, which indicates strong buying in the stock.

On YTD basis, the stock has surged over 18% and has outperformed the broader market and most of its peers. The performance of the stock in one week and one month stands at 2.82% and 11%, respectively. Thus, it is bullish for short term. Considering its strong price structure and volume, bullish technical parameters and strong past performance, we expect the stock to trade higher in coming days. Swing traders can take note of this and can gain good profits in the medium term as well.

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