Hello Readers,
Today our pick is Ambuja cement. It is a large-cap cement manufacturing company that manufactures Portland Pozzolana Cement.
Our Mandatory checklists are
- Candlestick & Delivery Volume Analysis
- Future Open Interest
- Option Open Interest
- Technical Analysis using Ichimoku system
- Overall
- Stop Loss & Risk Reward Ratio
Let's look at the chart from the Tradingview below,
1. Candlestick & Delivery Volume Analysis:
The candlestick pattern for the past few days shows a bearish pattern. On Tuesday the stock fell from a 50-period simple moving average with a long momentum candle followed by a Doji candle on the Wednesday with low volumes and again a long momentum red candle with huge volumes. The recent candle broke the support and closed below at 380.
The percentage of delivery volume in terms of traded quantity is 56% as per the NSE website.
Also, as per the charts, the volume is above the average volume for the past 10 days and volume is increasing which shows positive momentum in the delivery.
2. Future OI:
The increase in open interest in Oct futures on Tuesday and Thursday was significant as per the data available.
3. Option OI:
As per the Option open interest, the maximum OI has been written at Rs. 400/- There is no immediate support as per the OI data.
4. Technical Analysis:
As per the Ichimoku indicator, the price is below the cloud and all the components are also showing negative bias as follows
- Tenken Sen - Points downwards and closer to the price
- Kijun Sen - Points downwards and close to the price
- Senkou Span A - Points downwards and cloud is red
- Senkou Span B - Points downwards and cloud is red
- Chikou Span - Free in open space and don't have any immediate support on its way
RSI is at 33 and pointing downwards which shows bearish momentum.
5. Overall:
Overall the stock is showing more negative clues than positive.
6. SL & RR:
Stoploss for the stock can be at 392.5 and Target can be at 338. The RR will be 1:3
Thanks to Tradingview, NSE India.