Ambuja Cements Limited has given a downward sloping trendline breakout, formed by connecting swing highs from June 2020. This breakout is confirmed by the above 50-day average volumes.
Currently, the stock is trading above its short and long-term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. Interestingly, the daily RSI has broken out of inverse head and shoulders, which is a very bullish sign. The daily RSI is currently quoting at 65.66 and it is in a rising trajectory. The daily MACD stays bullish as it is trading above its zero line and signal line. Moreover, the other volume-based indicators like OBV and Money Flow Index are also very strong.
Going ahead, the zone of Rs 195-Rs 194 is likely to act as immediate support for the stock while major support is placed in the zone of Rs 192- Rs 190 as it is the confluence of short-term 20-day EMA level and the recent swing low. On the higher side, the next hurdle is seen in the zone of Rs 215-Rs 217 level.
On Thursday, the stock of Ambuja Cements closed at Rs 202 per share, surged by 3.30 per cent from its previous close. The stock opened at Rs 196.40 per share and hit an intraday high of Rs 202.90 and a low of Rs 195.60 per share on NSE.