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The stock of JK Cement Limited , last week, broke out of the resistance of ₹1,600 following which it registered a fresh lifetime high of ₹1,686 yesterday. The breakout hints at fresh build-up of bullish momentum and hence the outlook is positive for the stock.
The bull run in the scrip began during the final week of March this year, after it registered a low of ₹795.2 following a sharp fall in price. The rally lifted the stock to ₹1,600 levels in early August. But then the stock entered a consolidation phase where it was largely oscillating between ₹1,460 and ₹1,600 for about two months.
The stock, which started to gain positive momentum last week, broke out of the range on Friday. This has strengthened the case for the bulls. The daily relative strength index has been steadily moving up and stays in the bullish zone. Also, the moving average convergence divergence indicator is showing signs of an uptrend. Considering these factors, traders can buy the stock with stop-loss at ₹1,600 and look for a near-term target of ₹1,740.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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