Technical Stock Pick: Up 20% in 3 months to record highs! Bulls are likely to stay in charge of this cement stock; here’s why

In terms of price action, Ambuja Cement is trading below 5 and 10 DMA but above 20, 30, 50, 100, and 200 DMA on the daily charts. The stock is trading comfortably above both its 50-day and 200-day simple moving averages as well as exponential moving averages, indicating a sustained uptrend in the market.

Ambuja Cements, part of the cement industry, has rallied by about 20% in the last 3 months pushing the stock to fresh record highs in March 2024 and the price action suggests that bulls are here to stay.

Short-term traders can look to buy the stock now for a target above Rs 700 levels in the next 2-3 months, suggest experts. Shares of Ambuja Cement rose from Rs 501 as of December 6, 2023, to Rs 603 recorded on March 7, 2024, an upside of about 20% in just 3 months.

The momentum helped the stock to break out from the December 2022 swing high of Rs 598 earlier in February 2024 and the momentum continued in March as well.

“Ambuja Cement has been on a remarkable journey, hitting an all-time high of Rs 615 and simultaneously breaking its 52-week high. The company's stock is currently exhibiting several bullish signals, making it an attractive prospect for investors,” Suraj Bathija, Founder & CSO at AlgoBulls, said.

Most of the technical indicators suggest that bulls are here to stay and dips can be used as a buying opportunity.

“Various technical indicators, such as the Awesome Oscillator and the Aroon indicator, are flashing bullish signals, indicating a favorable market sentiment towards Ambuja Cement,” he said.

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In terms of price action, the stock is trading below 5 and 10 DMA but above 20, 30, 50, 100, and 200 DMA on the daily charts.

Ambuja Cement's stock price is trading comfortably above both its 50-day and 200-day simple moving averages (SMAs) as well as exponential moving averages (EMAs), indicating a sustained uptrend in the market.

This is a positive sign for investors looking for confirmation of the stock's bullish momentum. Recent positive breakouts from key resistance levels, notably at Rs 600, further reinforce the bullish sentiment surrounding Ambuja Cement,” highlights Bathija.

“This indicates a significant shift in market dynamics, with the stock poised for further upward movement. The recent increase in trading volume points towards strong buying pressure on Ambuja Cement's stock,” he added.

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This surge in demand suggests growing investor confidence and indicates a potential continuation of the upward trend.

“Given the bullish signals and positive market indicators, Ambuja Cement's stock is poised for further growth. With a target price of Rs 770 compared to the current market price of Rs 617, investors can expect significant returns. It's advisable to set a stop-loss at Rs 548 to mitigate risks and protect investments in the coming quarter,” recommended Bathija.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Source: Stocks-Markets-Economic Times