Shares of UltraTech Cement touched near 1-1/2-year low, and the chart suggested more downside. Shares of the country’s largest cement manufacturer fell as much as 1.49 per cent to Rs 3,563, their lowest since January 24, 2017.
The stock has broken below a support at Rs 3,642, the 61.8 per cent Fibonacci retracement level of the uptrend from December 27, 2016 low to January 17, 2018. This suggested that the stock may now fall towards the next support at Rs 3,416, the 76.4 per cent retracement level.
Trend Intensity indicator rose to 21, suggesting that the prices are trending downwards. RSI line faced resistance near 50 level this month, which is seen bearish for the stock. MACD is also negative and below its signal line.
As of Thursday's close, the stock was down about 10 per cent in the last one year, while the broader NSE Index was up 11.5 per cent in the same period.