Cement Sector in the Spotlight

Published on: June 27, 2024

The markets are roaring, and sector rotation is frequent, especially in mid-cap and small-cap specific stocks. While traders and analysts often keep track of NSE-specific sectoral indices, what about those that aren’t available?

You are in luck if you are a Definedge’s Zone platform user. Definedge has created multiple Equal Weighted Indexes for various sectors. In this article, I will highlight one sectoral index on the verge of a significant breakout – the Cement Sector.

Analysing the Cement Sector

Unlike NSE, which does not provide a cement-specific sectoral index, Definedge has developed the Cement EQW Index. We can gain insights into the sector’s performance and potential future movements by analysing this index.

Definedge Cement EQW Index

Source: Zone Web

On the Daily 0.25% X 3 Point & Figure (P&F) chart, the Cement EQW Index is on the verge of a Trendline and Double Top Breakout (DTB) pattern. This pattern indicates that the bulls are gaining control of the trend. A close above 2015 will confirm the breakout, signalling a strong upward movement.

Stocks to Watch in the Cement Sector

If the Cement Sector does break out, which stocks should be on your watchlist?

We ran the “All Chart Matrix” in RZONE to identify the most outperforming stocks in the sector using a multi-charting method and multi-timeframe analysis. Here is the list of stocks, ranked from outperforming to underperforming:

The Cement Sector, as analysed through Definedge’s Cement EQW Index, is on the cusp of a breakout. With a potential Trendline and Double Top Breakout pattern on the P&F chart, a close above 2015 will confirm the bullish trend. Traders should closely monitor the stocks listed above, as they are poised to benefit from any upward movement in the sector.

By utilising platforms like Definedge’s Zone, investors can stay ahead of the curve and make informed decisions in your trading journey.