GOLDEN RULES FOR TRADING

Cement Stocks Outlook for the week – 08 to 12.06.2015 (To trade in range with negative bias)

Cement Stocks Outlook for the week – 08 to 12.06.2015
(To trade in range with negative bias)

Cement stocks are likely to trade in range with a negative bias next week due to poor demand for the building material and declining prices. With the onset of monsoon, cement prices are likely to come down. Demand is already suppressed all over the country. Government projects will take another three to four months to materialize.

In the absence of any major sector-specific trigger, cement stocks are likely to take cues from the broader market. ACC Ltd, Ambuja Cements Ltd and UltraTech Cement ltd, being Nifty companies, are likely to rally according to the market. Cement stocks are expected to see recovery only after August in anticipation of demand picking up. Demand has not picked up in the current quarter and with the monsoon coming up, recovery is ruled out.


The market will start lapping up cement shares from August onwards. A long-term sustainable rally will be seen in only in the second half of the financial year 2016 (Apr-Mar). It will be a range bound trade till August. Cement stocks are going through correction. The general trend for these stocks is negative.