I am holding shares of Ambuja bought at Rs 284. Will the stock move up or should I exit now?
HOLD AMBUJA CEMENTS WITH A STRICT STOP LOSS OF RS 268
Ambuja Cements is currently trading at Rs 275. Its 52-week high/low stand at Rs 291.30/Rs 191 made on September 13, 2017 and November 22, 2016, respectively. Considering the weekly time frame, the stock has given multiple resistance breakouts at Rs 282-286 levels, but it has failed to sustain the levels on a closing basis. Currently, the stock is in consolidation mode with no major signs of upside or downside so far. Considering the daily time frame, the stock has just initiated a bounce-back after a sharp fall from Rs 288 to Rs 268 level with high volumes and 14-period RSI positive crossover. With this, we suggest to Hold in the scrip, but follow a strict stop loss of Rs 268, as recently also the stock has resisted at 38.2% retracement of the prior downward rally.