Grasim gives head & shoulders breakdown, awaits revival

Country’s second largest cement company by market capitalization, Grasim Cement has recently witnessed head & shoulders breakdown after one attempt failure on October 19. The stock had reversed sharply breaking its prior resistance at 1274, hitting 1299.90 on November 3.

However, despite 38.5 per cent revenue growth, Grasim Industries witnessed a de-growth of 36 per cent in PAT driven by higher operating expenses as well as depreciation and interest. The company is still awaiting its revival after both the company and government have failed to retain its ownership over its Mavoor land.

The stock of Grasim Industries witnessed an upward sloping multiple point trendline breakdown along with a head & shoulders pattern breakdown at 1180 on November 30 after it yet again failed in an attempt on November where the stock could not sustain breakdown on closing basis. It’s the third consecutive day on December 4 that the stock is trading southwards. On weekly basis, this is the start of one more weekly fall after 3-week downbeats with just one breather in the November 24 week. Going forward, we can expect a sharp downfall in the stock if supported by rising volumes and active momentum oscillators.