India: expect Ambuja Cements to test INR115-113

India: expect Ambuja Cements to test INR115-113
Published: 01 January 2011

Edelweiss Research is of the view that momentum and trend oscillators of Ambuja Cements are indicating a decline in coming weeks. It expects the stock to touch INR115-113 (US$2.52-2.47) levels on the downside.

"After breaking down from a ’bearish head & shoulder’ pattern, the price action of Ambuja Cements has taken a halt, making a continuation triangle consolidation pattern.

The stock has also given a breakdown of the long-term uptrending channel confirming the corrective move.

Momentum and trend oscillators are pointing towards a decline in the coming weeks. We expect the stock to test INR115 (H&S target) and further down to INR113 (multiple swing supports).

Upsides to INR133 are likely to face selling interests in the near-term," the report said.