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Trade Spotlight: What should investors do with ACC, Birla Corp and Ambuja Cement?

Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today

July 22, 2021 / 08:02 AM IST
 
 
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Indian market closed in the red for the third consecutive day in a row on Tuesday pushing benchmark indices below crucial support levels. The S&P BSE Sensex fell 354 points to 52,198 while the Nifty50 closed at 15,632 on Tuesday. The market was shut on Wednesday on account of a public holiday.

Broader markets remained weak throughout the trading session as well. The S&P BSE Midcap index was down 1.2 percent, and the S&P BSE Small-cap index fell 1.4 percent. Sectorally, selling pressure was seen in rrealty, metals, power, telecom, utilities, and banks.

Stocks that were in focus include ACC which rallied by over 7 percent, Birla Corp (up over 6 percent), and Ambuja Cement(up about 5 percent). All the stocks hit a fresh 52-week high on Tuesday.

Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

ACC:

Close

This counter seems to have registered multiple breakouts on the long-term charts to enter into uncharted territories.

However, the last 27 weeks of price action evolved into some sort of ascending channel, and as this counter is trading close to the upper boundary of the said channel, it needs a fresh breakout above Rs 2350.

In that scenario, a higher target towards Rs 2690 can be expected. Nevertheless, considering fresh breakouts on long-term charts dips into the bullish gap zone of Rs 2192 – 2168 levels can be considered as an opportunity to buy into this counter.

However, existing investors who bought at much lower levels should hold with a stop below Rs 2170 on a closing basis and look for a target of Rs 2690.

Birla Corp:

This counter seems to have signaled a resumption of its uptrend with new lifetime highs with a fresh breakout. Interestingly, the last 20 sessions of up move seem to be a struggle inside an ascending channel from the lows of 1141.

Hence, on sustaining above Rs 1349 levels, it should head towards Rs 1490 levels. Investors can hold and traders can consider fresh buying on a dip into the zone of Rs 1390 – 70 levels and look for a target of Rs 1490 by placing a stop below Rs 1349 on a closing basis.

Ambuja Cement:

It appears to be a secular bull run for cement pack as most of the counters from this space are hitting lifetime highs and Ambuja Cements seems to be no exception for this. However, on long-term charts, it has resistance around 410 levels.

Hence, it needs to consistently sustain above 410 to build on further gains. Interestingly last 25 weeks of price action evolved into a somewhat narrower ascending channel based on which a higher target of 445 can be projected.

Therefore, existing investors can hold with a stop below 387 on a closing basis and even fresh buying can also be considered on minor weakness.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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