India Cements has reported a significant improvement in its financial performance for the third quarter, with the company substantially reducing its net losses compared to the same period in the previous year.

Financial Performance Overview

The cement manufacturer posted a net loss of ₹57.00 million in the third quarter, marking a dramatic improvement from the ₹4.30 billion loss recorded in the corresponding quarter of the previous year. This represents a remarkable 98.7% reduction in losses on a year-over-year basis.

Operational Turnaround

The substantial reduction in losses indicates that the company has made considerable progress in addressing its operational challenges. The improvement of over ₹4.24 billion in net loss reduction demonstrates significant operational efficiency gains and better cost management during the quarter.

This financial turnaround suggests that the company's strategic initiatives and operational improvements have begun to yield positive results, positioning it on a better trajectory compared to its performance in the previous year.

Market Implications

The dramatic improvement in financial performance represents a positive development for stakeholders, as the company moves closer to achieving profitability. The 98.7% reduction in losses indicates strong momentum in the company's recovery efforts and operational optimization strategies.

The Nifty index extended its decline for the fourth consecutive session on Thursday, with selling pressure prominently affecting metals, IT, pharma and PSU bank sectors. The benchmark index has slipped below its rising trendline, indicating a sudden increase in bearish sentiment among market participants.

Market Outlook and Technical Analysis

Rupak De, Senior Technical Analyst at LKP Securities, highlighted that the Nifty has breached the psychological support level of 26,000 and closed below the 50 EMA for the first time in three months. This development signals a bearish shift in the overall market trend.

"A rising India VIX is also pointing to increased panic among market participants. Overall, the setup looks uncomfortable for the bulls. Selling pressure is likely to persist in the near term unless the Nifty moves back above 26,000," De explained. He projects potential downside targets of 25,700 and 25,550 for the index.

Stock Recommendations for Friday

Despite the broader market weakness, technical analysts have identified two stocks with strong upside potential based on their chart patterns and momentum indicators.

IFB Agro Industries - High Conviction Buy

IFB Agro Industries has delivered a decisive breakout above the key resistance zone near ₹1,600.00, supported by strong bullish momentum and rising volumes. This indicates fresh institutional participation in the stock. Kunal Kamble, Sr. Technical Research Analyst at Bonanza Portfolio, notes that the stock is trading well above its short- and long-term moving averages, confirming a strong uptrend structure.

The technical setup shows the 20 EMA and 50 EMA sloping upward, providing immediate support on minor pullbacks. The RSI is positioned near 70, reflecting strong momentum without extreme overbought conditions. The breakout after a consolidation phase suggests trend continuation.

India Cements - Bullish Continuation Play

India Cements has confirmed a bullish continuation pattern by breaking above the rising trendline resistance near ₹460.00, supported by strong price action and improved volumes. The stock is firmly trading above its 20, 50, and 200-day moving averages, indicating a well-established uptrend across multiple timeframes.

The short-term moving averages are stacked positively, suggesting sustained momentum. The RSI is above 70, reflecting strong buying strength and trend dominance rather than exhaustion. The higher-high, higher-low structure remains intact, supporting further upside potential according to Kamble's analysis.

Risk Management

Both recommendations come with clearly defined stop-loss levels to manage downside risk. Traders are advised to maintain strict discipline with the suggested stop-loss levels of ₹1,600.00 for IFB Agro and ₹449.00 for India Cements.