Shree cement: Most expensive stock in the index Nifty

Shree cement became the third cement company to be included in NIFTY along with Grasim and Ultratech cement.It is the most expensive stock in index.
Shree cement , Grasim, Ultratech cement

Shree cement made its debut in NIFTY 50 index on 19 March 2020. Shree cement became the third cement company to be included in NIFTY; Grasim and Ultratech cement being two other.It was the most expensive stock on inclusion in index.

Inclusion in NIFTY was a positive news for the company and analysts at Edelweiss had estimated inflows of $96 million (Rs 700 crore) into the stock on account of the Nifty inclusion.But stock is downtrend along with the NIFTY. Shree cement has given 31.57% negative return over the last month.

On Friday the company closed 6.34% or 1,049.65 points  down at 15,500.00. It also made a new 52 weeks low during the session at 15410. At the current price, the company is the most expensive stock in the index Nifty.

Cement companies are likely to continue their downtrend as domestic cement demand is likely to affect adversely due to the lockdown to control the coronavirus infection.In the first 10 months of FY20, the cement production reported a modest 1.1 per cent increase to 278.8 million tonne over the year-ago period.

Technical analysis of stock is in strong bearish trend and risk appetite investors should short the stock if it breaks below important support level of 15200 with price target of 13850.

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