The stock of Ambuja Cements breached the resistance band of ₹277 and ₹280 on Monday and the scrip is likely to post more gains in the forthcoming sessions. Thus, traders hunting for short-term opportunities can go ahead and buy.
The stock was largely fluctuating within the price levels of ₹242 and ₹270 between November last year and January this year. There was a sharp rally in first week of this month where the price accelerated from the base of ₹240.
Though it pipped above the resistance level of ₹270, the scrip went flat and started to trace a narrow range. For the past two weeks, it has been hovering within ₹268 and ₹280. The price pattern that formed during this period resembles that of the ascending triangle pattern.
Yesterday, the stock has broken out of the resistance at ₹280, confirming the ascending triangle pattern. Also, indicators like the relative strength index and the moving average convergence are bullish. Hence, traders can buy the stock with stop-loss at ₹277 for a target of ₹295.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)