The short-term outlook for the stock of JK Lakshmi Cement is bullish. The strong 5.86 per cent rally on Tuesday marks the end of the corrective fall since mid-September. Immediate support is at ₹570. Below that ₹557 and ₹540 are the next important supports.
JK Lakshmi Cement can rise to ₹610 initially in the next one-two weeks. A break above ₹610 will then take the stock further up to ₹655 in a month. Traders can go long now. Accumulate longs on dips at ₹575. Keep the stop-loss at ₹553. Trail the stop-loss up to ₹595, the stock moves up to ₹605. Move the stop-loss further up to ₹615 when the stock touches ₹630 on the upside. Book profits at ₹640.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)