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The stock of Ambuja Cement broke out of the resistance at ₹292 a couple of sessions ago and closed above the psychological level of ₹300 after marking a fresh lifetime high of ₹307.5 on Wednesday. This has strengthened the case for the bulls and the stock is likely to appreciate further from the current levels. So, traders looking for short-term picks can consider buying this stock.
The uptrend in the scrip began in early April last year and still holds good as the stock continues to make new highs. Though there were intermittent corrections, the stock continued to scale new heights and has bounced off the 21- and 50-day moving averages (DMAs) consistently, keeping the uptrend intact. Even the recent bounce came on the back of the support of 21-DMA. Also, there is good build-up in volume over the past week and the high volume breakout is a good indication of a strong uptrend.
Considering the above factors, one can buy the stock of Ambuja Cements with stop-loss at ₹296 for a target of ₹318.
The recommendations are based on technical analysis. There is a risk of loss in trading
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