Technical Analysis

Ambuja Cements (₹232.8): Buy

Yoganand D BL Research Bureau | Updated on March 11, 2019 Published on March 12, 2019

The stock of Ambuja Cements jumped 3 per cent backed with good volume on Monday, breaking above the key resistance level of ₹227. Investors with a short-term horizon can consider buying the stock at the current levels; it has potential to trend upwards.

Following an intermediate downtrend from the all-time high of ₹291 recorded in August 2017, the stock found support between ₹190 and ₹200 in July 2018. Thereafter, the significant long-term support in the ₹190 and ₹200 band continued to provide base for the stock in the months of October 2018 and February 2019.

The stock has been in a near-term uptrend over the past three weeks. While trending up, it has decisively breached the 50- and 200-day moving averages in early March and hovers well above these averages. The daily relative strength index feature in the bullish zone and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Moreover, the daily and weekly price rates of change indicators are hovering in the positive terrain implying buying interest.

Overall, the short-term outlook is bullish for Ambuja Cements. Traders can buy the stock with a stop-loss at ₹227.5. Targets are ₹242 and ₹247.

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

Published on March 12, 2019
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