Technical Analysis

Sizzling Stocks - Ambuja Cements (Rs 167.8)

Yoganand D. | Updated on June 16, 2012 Published on June 16, 2012


Ambuja Cements zoomed almost 11 per cent in the previous week. This rally has emphatically penetrated its 200-day moving average around Rs 155 and significant resistance at Rs 160. But, it will face resistance at Rs 174. Since 2008 low at Rs 43, the stock has been on a long-term uptrend shaping higher peaks and troughs. Medium as well as short-term trend are also up. The stock is hovering well above its 50- and 200-day moving averages.

The daily relative strength index is hovering in the bullish zone and the weekly RSI is about to enter this zone from the neutral region. The daily moving average convergence divergence indicator is featuring in the positive territory implying upward momentum. A conclusive breakthrough of resistance at Rs 174 will push the stock higher to Rs 185 and to Rs 200, psychological resistance in the medium-term. Key supports for the stock are pegged at Rs 150 and Rs 138.

Tulip Telecom (Rs 101.5)

The stock appears to have bottomed out from a medium-term perspective as it jumped 18.5 per cent last week. However, its long-term trend remains down since it peaked out at Rs 250 in August 2009. Strong up move above Rs 170 is needed to alter the stock's long-term downtrend and take it higher to Rs 190 or Rs 210. Since its 52-week low at Rs 70 marked on May 22, the stock has been trending upwards. We observe that there is an increase in volumes over the past five weeks.

The stock has breached its 21- and 50-day moving averages while trending upwards and is hovering will above them. However, it has significant resistance at Rs 108. An emphatic breakthrough of this resistance will accelerate the stock higher to Rs 120 and then to 132 in the forthcoming months. On the other hand, a decline below Rs 89 will drag the stock down to Rs 80 and to Rs 70 in the medium-term.

Published on June 16, 2012
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