Technical Analysis

Ambuja Cements (₹283.4): Buy

Akhil Nallamuthu BL Research Bureau | Updated on February 16, 2021

The stock of Ambuja Cements breached the resistance band of ₹277 and ₹280 on Monday and the scrip is likely to post more gains in the forthcoming sessions. Thus, traders hunting for short-term opportunities can go ahead and buy.

The stock was largely fluctuating within the price levels of ₹242 and ₹270 between November last year and January this year. There was a sharp rally in first week of this month where the price accelerated from the base of ₹240.

Though it pipped above the resistance level of ₹270, the scrip went flat and started to trace a narrow range. For the past two weeks, it has been hovering within ₹268 and ₹280. The price pattern that formed during this period resembles that of the ascending triangle pattern.

Yesterday, the stock has broken out of the resistance at ₹280, confirming the ascending triangle pattern. Also, indicators like the relative strength index and the moving average convergence are bullish. Hence, traders can buy the stock with stop-loss at ₹277 for a target of ₹295.

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

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 16, 2021
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.