India Cements Surges Over 9%, Highest Single-Day Move in 9 Months with Volume Surge

On Wednesday, Indian equity benchmark indices retreated from higher levels, with the Nifty50 and Sensex trading down by 0.11% and 0.05%, respectively. The Bank Nifty also fell by 0.33%, trading below the 52,500 mark. Amidst this profit booking in the market, one stock that has hogged the limelight is India Cements.

About the Company

India Cements (ICL) is one of the largest producers of cement in South India, with a total installed cement manufacturing capacity of 15.55 million tonnes per annum (mtpa) as of December 31, 2023. ICL was established in 1946 by Sankaralinga Iyer and T. S. Narayanswami and is presently headed by N. Srinivasan, Vice Chairman and Managing Director. ICL owns and operates 10 cement manufacturing units (including two split grinding units) in Telangana, Andhra Pradesh (AP), Tamil Nadu (TN), Maharashtra (MH), and Rajasthan. The company primarily manufactures two standard types of cement: Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC), with the mix being 35:65.

India Cements Ltd. experienced a remarkable surge in its stock price today, drawing significant attention from market participants. The stock is trading at Rs 251.30, marking a 9.55% ascent from the previous close, with a substantial rise in trading volumes.

Unpacking the Surge

On June 26, 2024, India Cements stock opened at Rs 230.50 and saw buying interest right from the opening, evidenced by the stock seeing an open=low scenario. Interestingly, the up-move in the stock is accompanied by a rise in volume. In the first hour of trading, the stock witnessed a total trade volume of 175.3 lakh shares, more than a four-fold jump compared to its 30-day average volume.

Technical Analysis: Key Indicators

The stock price broke through a critical resistance level, supported by the 20-day Simple Moving Average (SMA), which is currently at Rs 217.68. The Relative Strength Index (RSI) also indicates bullish momentum, quoting at 69.31.

Historical Performance

In the last year, the shares of India Cements have delivered a negative return of 2.55%. However, in June, the stock has risen by double digits, delivering a 23% return.

Market Sentiment and Investor Behavior

Today’s price action reflects strong bullish sentiment among investors, possibly driven by positive news or market speculation. The higher-than-average trading volume indicates significant interest and activity, which often precedes further analysis by institutional investors and analysts.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.