I’m holding the stock of Ambuja Cement bought at higher price and suffering a loss at present. Considering the sharp fall in the stock price and markets, should I average at the current levels? - Satish Kothari
AVOID AMBUJA CEMENT FOR NOW
Ambuja Cement is currently trading at Rs 213.45. Its 52-week high/low stand at Rs 288.65/Rs 189 made on October 31, 2017 and July 17, 2017, respectively. The stock after registering its 52-week high level formed lower peaks and lower troughs and made a low of Rs 189. However, post the low, the stock witnessed a decent rally and marked a high of around Rs 245 level and this turned out be a breather rally after a sharp fall and the stock continued its slide downwards. The stock is trading below its important moving averages, i.e. 100-DMA and 200-DMA, which is negative for the stock. The 14-period daily RSI is trading below its nine-day average and moving in a downward trajectory suggesting a negative bias. Considering the above factors, we would suggest you to avoid averaging in this stock at the current levels.