Why Traders Should Keep Ambuja Cements on Their Watchlist

Nifty Performance on Tuesday

On Tuesday, the Nifty index formed an “open=high” candle, indicating that the day’s opening price was almost the same as the day’s high. Despite an initial surge, profit-taking at higher levels led to the index closing approximately 80 points below its peak. However, it ended the day with modest gains of 0.14%, or 32 points.

On the daily chart, the index formed a bearish candle as the closing price was lower than the opening price. Nonetheless, it is positioned around the 20-day moving average (DMA), which is likely to provide strong support. Stock-specific activity was prominent on Tuesday, and this trend is expected to continue on Wednesday. To help navigate these market movements, we’ve selected an interesting stock to watch.

Ambuja Cements Ltd.

Ambuja Cements Ltd. finished Tuesday with a 3.29% increase, on higher-than-average trading volume. Technically, the stock closed at a resistance point while achieving its highest closing price. The increased volume indicates robust buying interest, and the recent dip was supported by the moving average ribbon. Currently, the stock of Ambuja Cements is trading 6.01% above its 50 DMA.

Technical Indicators for Ambuja Cements Ltd.

Ambuja Cements Ltd. exhibits several strong technical indicators suggesting a bullish trajectory. The Moving Average Convergence Divergence (MACD) is on the verge of generating a bullish signal, indicating potential upward momentum. The 14-period daily Relative Strength Index (RSI) has shifted into the bullish zone, signaling that buying pressure is on the rise. Additionally, the Stochastic RSI has given a robust bullish signal, further reinforcing the likelihood of an upward trend. The Elder Impulse System has formed a strong bullish bar, confirming positive market sentiment. These technical signals, combined with the stock’s position above key moving averages and a strong support level at the moving average ribbon, suggest that Ambuja Cements is poised for further gains. 

Overall, these indicators suggest that the stock is poised to close above its prior pivot point. If it breaks above Rs.640, it could potentially test Rs.665. It’s recommended to maintain a stop loss at Rs.630.

Upcoming Earnings

Ambuja Cements Ltd. is a stock to keep on your radar. The company is expected to announce its earnings on May 1, 2024, which could further influence its stock price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.