For past two months had maintained the long view on Cements which have all gone up 10-15% against a falling index.
Now if we look into long term charts it shows a much more rosy picture.
- The stock is making a 3-4 year Inverted Head and Shoulders Pattern with a breakout point placed at 1150-1170.
- In the last 3-4 years the stock has faced resistance at 1150-1170 apart from a spike to 1200 + levels in the peak of 2008. Over the last 1 year we have already seen 3 attempts. Generally the stock takes a good 10-15% dip after such a hit but we are seeing the stock hold on closer to 1080-1100 mark indicating good strength.
- The stock has outperformed the benchmark indices in the current dip and is a good defensive stock in the Index with limited downside.
- The stock can be accumulated at 1100-1130 and any dips to 1050-1080. Stoploss to be kept at 1020 and a target price of 1300/1450 in the long term.
Investors may even look into midcap/smallcap cements as the next sector to watchout for on every dip and Valuations are attractive on midcap side. \
We maintain a strong long term view on ACC, Ambuja and Ultra Tech and Shree Cements … Will update more on specific levels soon.
October 24, 2011
Hello Nooresh,
What do you make of L&T? Should one start doing a SIP? Any levels there?
Also at what levels should one consider entering in ITC & HUL? I know HUL is one of your favorites. However do you have a range where one should start getting in?
I am considering a long term horizon (at least 3-4 yrs) for all 3 of them.
Thanks, Pranav.
October 24, 2011
Hi,
LnT 1200 or lower looks interesting but dont expect major turnarounds.
HUL 325/300 good entry points. ITC i would prefer to wait. Look into Godrej Inds, Aditya Birla Nuvo for 3-4 years trade.
October 25, 2011
hi nooresh,
Saw you on CNBC, 🙂 quick question about Piramal Glass, it went to 132 and dipped? is it a buy, i have 100 at 144 /-
October 25, 2011
Hi Bhanu ,
Piramal looks good for long term but may remain sideways as of now till markets dont firm up
October 25, 2011
what is the problem with jain irrigation
October 25, 2011
Hi Vijaya,
Technically its weak. Fundamental issues came at 200 levels. Will get interesting below 100
October 25, 2011
Mr. nooresh,
as always all time excellent analysis we got every time. this time also interesting chart u posted with ASCENDING triangle with Inv. H&S.
Who are long term investor in this stock will try to book profit but aftr checking by technically ACTUALLY THOSE MUST REMAIN HOLD FOR MORE GAIN!!! Is it right!!!
I salute for such type of analysis.
Thanks & expect same in FUTURE.
He$H. . .
October 25, 2011
Hi,
Thanks for your kind words Hesh 🙂
October 25, 2011
acc on fire great analysis sir