JK Lakshmi Cement: A shining star in the cement industry with promising growth prospects

In the midst of the recent market turbulence and subsequent recovery, strategic portfolio diversification stands out as a wise choice. Within this market turmoil, a notable figure in the cement industry stands out as it experiences a trend reversal price pattern breakout.

JK Lakshmi Cement Ltd. is a prominent player in the cement sector, specializing in the manufacturing and marketing of various cement products. Their product range includes JK Lakshmiplast Pro+ Cement, PPC blended cement, ordinary Portland cement, power mix concrete, autoclaved aerated concrete blocks, and lightweight gypsum plaster. The company’s roots trace back to August 6, 1938, and it calls New Delhi, India, its home.

As part of the JK group, JK Lakshmi Cement Ltd. manufactures and supplies cement and related products, including Ready Mix Concrete (RMC) and AAC Blocks, across different regions in India.

In the cement industry, JK Lakshmi Cement Limited has navigated the market’s ebbs and flows in recent weeks. Significantly, it achieved its zenith at Rs 896.90 on December 14, 2022, subsequently retracing from the rally that commenced on May 17, 2022, commencing at Rs 366.25. It found robust support around the Rs 607.20 mark, marking a retracement of approximately 50%.

Analyzing the stock movement from June 07, 2023, a narrow consolidation range formed just below the 200 Daily Moving Averages (DMA). The 14-day RSI indicator remains in the bullish territory around 62.51, with a favourable crossover of the 5-26 DMA, signifying positive momentum. Notably, a breakout trendline has emerged, connecting peaks from June 07, 2023 (Rs 749.50) to September 05, 2023 (Rs 711), indicating the presence of a sustained trend reversal price pattern, recognized as an inverted head and shoulder pattern spanning over 61 days.

In recent trading sessions, JK Lakshmi Cement Limited surged to a high of Rs 701 with support of 5 Daily Moving Average (DMA), surpassing the mentioned breakout trendline level of Rs 690, and concluded at Rs 693.45, confirming the breakout of the stated price pattern. Following this breakout, the stock holds the potential to reach Rs 828, denoting a 20% gain from the breakout level. JK Lakshmi Cement Limited has now garnered the interest of both swing traders and long-term investors, offering a promising opportunity for further growth in this ever-evolving market.

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.