Technical Analysis

Ambuja Cements (₹193.2): Sell

Yoganand D BL Research Bureau | Updated on September 04, 2019 Published on September 04, 2019

Aerial view of the Ambuja cement plant, Kolkata.(file photo)

Investors with a short-term perspective can sell the stock of Ambuja Cements at current levels. The stock has been in a medium-term downtrend since encountering a key resistance at ₹240 in late May 2019. While trending down, the stock breached a key support at ₹210 and the 200-day moving average placed at around ₹215 levels in July and continued to trend downwards.

Over the last one month, the short-term trend has been down for the stock. It trades well below the 50- and 200-day moving averages. On Tuesday, it decisively breached a key support at ₹200 by declining 4.4 per cent accompanied by above average volume. The stock trades well below the 50- and 200-day moving averages.

The daily relative strength index has entered the bearish zone from the neutral region and also the weekly RSI has entered the bearish zone implying selling pressure. Besides, the daily as well as the weekly price rate of change indicators hover in the negative territory implying selling interest.

Overall, the short-term outlook is bearish for Ambuja Cements. It can continue to decline and reach the price targets of ₹185.5 and ₹181.5 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹197.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on September 04, 2019
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