PICK OF THE WEEK: AMBUJACEM (NSE)

18th November 2019

Pick of the Week: Buy AMBUJACEM in Cash @ 202 & Upto 199 SL 184 TGT 245

  • Ambuja Cements Ltd, a part of the global conglomerate LafargeHolcim, is among the leading cement companies in India. Ambuja Cement has provided hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started operations.
  • Ambuja Cements Ltd is the first Indian cement manufacturer to build a captive port with three terminals along the country's western coastline to facilitate timely, cost-effective and environmentally cleaner shipments of bulk cement to its customers. The Company has its own fleet of ships. ACL has also pioneered the development of the multiple, bio-mass, co-fired technology for generating greener power in its captive plants.
  • Ambuja Cements Ltd enjoys a reputation of being one of the most efficient cement manufacturers in the world. Its environment protection measures are considered to be on par with the finest in the country. It is also one of the most profitable and innovative cement companies in India.
  • From a single plant with a capacity of 700,000 tonnes per annum in 1986 to a cement giant with five integrated cement manufacturing plants and eight cement grinding units with a total capacity of 29.65 million tonnes in 2016, the company has come a long way in only 30 years of its existence.
  • Technical Outlook
  • On a weekly chart, the stock has formed “Bullish Hammer” candlestick pattern, which occurs at the bottom of the downtrend and indicates a reversal move in the prices.
  • Moreover, the stock has taken support and sustain above itslower band of “Rectangle Pattern” which indicate robust upside movement in the stock.
  • On a daily chart, the stock has formed “Bullish Engulfing Candlestick” which is a bullish reversal pattern which suggests an upside movement in the counter.
  • Moreover, the stock is trading and sustaining above its 21 & 50 Days Simple Moving average which signifies positive rhythm in the stock.
  • Furthermore, the stock has been trading with support of its “Lower Bollinger band" which suggests a northward movement with high volatility in the counter.
  • A daily momentum indicator RSI’s reading is at 46.88 level and about to make a positive crossover, apart from this, the RSI has taken strong support of its Horizontal Trend Lines which points out for a positive breath in the counter.
  • Based on the above technical structure, we are expecting an upside movement in the AMBUJACEM in a few trading sessions.

Company Name

AMBUJACEM

Our Recommentation is to

Buy

Buy

202

Targeted Price

245

Stop Loss

184

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