UltraTech Cement was the top gainer in the Nifty50 as well as the BSE Sensex, rising 2.9 percent and formed a long bullish candlestick pattern on the daily scale with above-average volumes on June 6. The stock closed at Rs 8,109.55 on the NSE.
After June 2022 low of Rs 5,157, the stock has been in an uptrend making higher highs and higher lows on daily charts and decisively reclaimed the Rs 8,000 mark today. Now, it is around Rs 160 away from its all-time high of Rs 8,269 on November 8, 2021.
Further, UltraTech has given a healthy breakout of a long downward sloping resistance trendline adjoining highs of November 8, 2021, and May 30, 2023, with trading well above 50 as well as 200-day EMA, indicating an upbeat mood in the counter. Also, there was Bollinger band expansion with today's rally and the last five-day consolidation breakout on the chart.
Hence, considering the momentum in the counter, it can march towards record highs in coming sessions and surpassing an all-time high can take the rally further towards Rs 8,500, with support at around Rs 7,800, but avoid fresh longs, experts said.
"The stock is steadily moving upward with Higher Top, Higher Bottom formation on all the time frames like daily, weekly & monthly indicating a strong positive undertone of the stock. Today the stock gave consolidation breakout which has been forming for the last few days with high volume confirmation," Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.
Now the immediate resistance for the stock is Rs 8,269 which is its life high and above that it has potential till Rs 8,500 level, he feels.
On the other hand, Vidnyan said the stock has strong support at Rs 7,850, followed by Rs 7,740 mark.
The momentum indicator RSI is rising and sustained above the 60 level in all the time frames indicating strong positive momentum of the stock.
Since last 12 months, the said counter has already given a 57 percent return.
At the current juncture, Jigar S Patel, Senior Manager - Equity Research at Anand Rathi feels the stock is approaching its resistance zone of Rs 8,200-8,250 along with volume decreasing as price action is going up which is a matter of concern. Hence, one needs to avoid fresh longs, he advised.
On the flip side, if it closes above Rs 8,260 on the daily scale then fresh buying might be seen, Jigar feels.
Disclaimer: The views and investment tips expressed by investment 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.
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