By Kiran Jani
The cement sector, which has been on a downward trend for the past nine months, is finally showing signs of recovery. With prices stabilizing and the broader market improving, certain stocks are starting to indicate potential for a turnaround.
Ambuja Cement and ACC
In particular, these two stocks have formed reversal patterns that suggest opportunities for traders and investors.
Ambuja Cement – A Bullish Reversal emerging
Ambuja Cement experienced a sharp 35% decline from its peak in July 2024, dropping from ₹706 to ₹455. However, a significant rebound from these lower levels points to renewed investor interest and the possibility of a trend reversal.
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Key indicators supporting Ambuja Cement’s strength:
- Breakout from Falling Trendline: The stock has recently broken above a long-term descending trendline, reinforcing bullish sentiment.
- 100-SMA Crossover: The stock price is now trading above its 100-day Simple Moving Average (SMA) for the first time since October 2024, signalling a potential shift in trend.
- Volume Surge Confirming the Breakout: An increase in both price and trading volume suggests strong market participation, validating the upward momentum.
- Strengthening RSI Momentum: The 14-period Relative Strength Index (RSI) is above 60, indicating bullish divergence and pointing to further potential upside.
Source: Investing.com
Outlook: Ambuja Cement Limited
Ambuja Cement Limited saw a strong 73% return from October 2023 to July 2024. However, the stock has been in a correction phase recently, dropping from ₹706 to ₹455 over the past nine months. There are now early signs of a possible recovery. The stock has broken above a long-term downward trendline and is trading above the 100-day Simple Moving Average (SMA), with rising volume. These are key indicators that often suggest the stock may be preparing for an upward move.
ACC – Bullish Reversal in play
ACC experienced a 37% decline from July 2024 to February 2025. However, the stock is showing early signs of a potential reversal, with bullish signals appearing on the daily chart. This suggests a possible shift in trend.
Key technical indicators:
- Falling trendline breakout – The stock has broken out from key long term falling trending, reinforcing bullish sentiment.
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