The downside, however, is seen limited with most of these shares hovering around their 52-week lows.
Most negative factors such as weak outlook on pricing of cement and the likely fall in off-take because of rising interest rates hitting the demand in the housing and construction sector are also factored in the current prices, they said.
However, a sharp movement in cement shares on either side is unlikely, dealers said.
Cement prices are likely to witness weakness in the monsoon season because of the halt in construction activity, stockists said.
Although recent reports said cement prices are likely to rise by around Rs 3 per 50-kg bag in Gujarat and Maharashtra, none of these markets have witnessed any such hike, they said.
Chances of any price hike in the monsoon season are low and if at all there is any increase, dealers and stockists are of the view that the hike in the western region is unlikely to be sustained because of slack demand.
Earnings of cement companies in April-June are also likely to be weak with a fall in profit and net realisation due to muted price hikes during the quarter and rising cost pressure.
Among frontline cement makers, Shree Cement and Ultratech Cement will detail their earnings on Friday.
Shree Cement is expected to report a revenue growth of 29.9 Per cent at Rs 553 crore on the back of a 26 per cent rise in volume on account of higher capacity expansion.
However, due to a decline in operating margin and higher provision for depreciation, net profit is expected to decline 26.7 per cent to Rs 8.57 crore, the report said.
