ICICI Securities says investors should Buy ACC in range of Rs 1840 – Rs 1870 with Target of Rs 2190; and Stop Loss of Rs 1680 and the time frame will be 3 months. Broader markets came under relative pressure in the last couple of weeks where stocks have seen significant correction amid profit taking. ICICI Securities believes markets may move into some consolidation for some time amid stock specific pullbacks. In such a scenario, stocks where fresh positions have been formed are likely to perform better. ACC share price today is Rs 1906, down Rs 8 or 0.4%.

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Cement stocks have found renewed traction in the last few sessions while stocks like ACC are likely to witness fresh upsides. The stock has made fresh lifetime highs surpassing 2017 highs of Rs 1850. Recently, the stock has been hovering in the range of Rs 1700 – Rs 1850 for the last couple of weeks. Now, it has finally moved above the range amid fresh accumulation seen in the April series indicating ongoing momentum should continue in the coming weeks.

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The current open interest in the stock is relatively lower compared to the last few months. With recent price performance, we expect the stock to witness fresh accumulation. Unlike indices, the roll spread in the stock is near zero despite the price performance, which should be considered a positive indicator for the stock. From the options space, no major Call option base is in place for the April series. The only accumulation is visible at the money  1900 strike. As the stock is already trading near these levels, continued upsides can be expected in the short-term. The delivery Z-Score has again started to move into the positive territory since February 2021 as ACC stock is witnessing fresh accumulation in the delivery segment.  

ACC has been finding it tough to sustain above its long term mean+2 sigma levels. Currently these levels are placed near Rs 1850, which has been acting as a hurdle for the stock. Now, after moving above it, ICICI Securities expect the upside momentum to take ACC share price towards its 3 sigma levels, which are placed near Rs 2200.