Buy cement stocks on dips: CK Narayan

CK Narayan, President Treasury, Sharyans Resources in an interview with ET Now talks about cement stocks.

What is the call on Apar and Andhra Cements? The cement pack as a whole...

Andhra has been a very low volume kind of stock, completely disinterested for a very long time and it is this piece of news which seems to be perking it up. As far as the charts are concerned, anything upwards of 17 could probably propel the stock towards 22-23 levels but I do not really see far too much.

I do not think the valuations will really fit above that also. So 22-23 is what people should look at if it were to trade successfully beyond Rs 17. Apar seems to be pretty decent. It has been building up well. It has managed to retain a lot of its gains. It has been consolidating rather than declining even during the bad times.

So it is a stock worth watching. There are some signs of accumulation patterns. About 250 is where it would actually qualify for a buy for about a Rs 50 rise. So if one is interested in looking at a decent midcap with some story behind it, maybe the sell off of Uniflex will bring in some money.

Cement as a whole the large amount of interest is in the large caps. The small caps are actually going in the wake of the large caps but then we did see a big hit coming into UltraTech and all recently. So clearly some unloading has been there. So I would also keep cement as a range trading sector, look to buy them only on dips.