Cement Stocks Rebound As Bullish Bets Rise

Shares of cement companies UltraTech, ACC and Ambuja Cements gained over 4 per cent today as long positions were seen building up in these stocks ahead of expiry of May derivative contracts.

UltraTech Cement traded 5.65 per cent higher at Rs 2,393 while ACC rose 4 per cent to Rs 1,391.45 and Ambuja Cements advanced 4 per cent to Rs 217.45. In comparison, the broader markets were mostly flat.

Aditya Agarwal, vice president of derivatives at Way2Wealth, said, "The cement stocks were subdued for last couple of sessions. We are seeing fresh long positions getting built up in most of cement stocks...we can expect another 4 to 5 per cent rally in ACC."

"UltraTech Cement has broken its immediate resistance and we may see another 8-10 per cent rally in this stock," he added.

At 12.30 p.m., NSE data shows that open interest (outstanding positions) in May futures of UltraTech Cement rising by 54,500 shares whereas open interest in ACC May futures surged by 12,500 shares.

Typically, if the price of a stock goes up following higher open interest it indicates a long build-up in that stock.