The Hindu Business Line : Dalmia Cement (Rs 240.2): Buy

Investors with short-term perspective can consider buying the stock of Dalmia Cement (Bharat). It is evident from the charts of the stock that following a medium-term downtrend from May 2010 peak of Rs 279 to late August low of Rs 195, the stock resumed its long-term uptrend taking support in the significant support range between Rs 195 and Rs 205. On September 7, the stock jumped 9 per cent penetrating its moving average compression (21, 50 and 200-day moving averages) around Rs 210. The volume was extra-ordinary on that session. Further, reinforcing the bullish momentum, the stock advanced almost 5 per cent on Wednesday accompanied with good volume.

The stock is at present trading well above its 21 and 50-day moving averages. The 14-day relative strength index is featuring in the bullish zone and the weekly RSI has just entered this zone.

Both daily and weekly moving average convergence divergence oscillators are hovering in the positive territory, signalling bullishness. Our short-term forecast on the stock is bullish.

We expect it to rally further until it hits our price target of Rs 245 or Rs 252 in the approaching trading sessions. Short-term traders can buy the stock while maintaining stop-loss at Rs 234.

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From: http://www.thehindubusinessline.com/2010/09/23/stories/2010092351681100.htm