Quant Pick - Ramco Cement - ICICI Direct

Recommendation

Buy Ramco Cement in range of Rs. 850-867
Target: Rs. 995
Stop Loss: Rs. 782
Time frame: Three months

Derivatives & Quantitative Outlook

In the current market scenario, the broader market is recovering significantly while traction was also seen in infrastructure, realty and cement stocks. Cement stocks are also seeing the same trend as stocks like UltraTech Cement and Ramco Cement are relatively outperforming in the space.

The open interest in the stock had moved to four-month highs in early January 2021. Since then, it has seen a sharp decline in OI at the end of January while OI levels have come down more than 30% along with a gradual fall in stock prices. Closure of leverage positions was seen in the stock in mid-January indicating closure of long positions. We believe longs positions in the stock are intact. Also, we expect long additions in the stocks. The upward bias may continue in it in coming weeks.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_RamcoCement_Feb21.pdf

Shares of The Ramco Cements Limited was last trading in BSE at Rs.860.5 as compared to the previous close of Rs. 878.2. The total number of shares traded during the day was 228739 in over 5617 trades.

The stock hit an intraday high of Rs. 895 and intraday low of 851.85. The net turnover during the day was Rs. 198957813.

Source : Equity Bulls

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