Select cement stocks are now poised for correction

Benchmark Nifty Index continues to oscillate between 10,700-11,000 levels during the month of January 2019. Bulls made several attempts to surpass 11,000 mark but were capped. Intermediate support for index is now at 10,700-10,650 levels. A decisive break is needed and could possibly trigger further weakness. However the rally since the low of 10,000 in November 2018 until recent high of January 2019 appears a bounce and in addition to this, there is a minor possibility market could rebound until 11,000- 11,100 before heading lower below 10,700-10,650. Going ahead in 2019, Nifty could outperform MidCap Index on relative basis. Within the auto space, Ashok LeylandNSE -1.08 % at the current levels of Rs 82 indicates price could continue to oscillate towards the southern trajectory until Rs 75-70 levels. Bajaj AutoNSE 0.43 % at Rs 2,623 has breached the intermediate levels of Rs 2,630 and is poised to edge lower initially till Rs 2,450-2,500 levels. Avoid going long or accumulating Maruti as stock could possibly witness extended correction. Similarly Escorts could witness a fresh correction from the current levels of Rs 702 until Rs 640.