AMBUJACEM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.3

📊 Chart Patterns: AMBUJACEM is trading below both its 50 DMA (553 ₹) and 200 DMA (561 ₹), reflecting short-term weakness. Current price (540 ₹) is near support at 530–540 ₹, with stronger support at 455 ₹ and resistance around 553–561 ₹.

📈 Moving Averages: Price below both averages indicates bearish bias. Sustained move above 561 ₹ is required for reversal.

📉 RSI: At 41.9, RSI is neutral-to-weak, suggesting limited momentum and potential sideways consolidation.

📉 MACD: Negative at -4.04, confirming bearish momentum and lack of strong upward signals.

📊 Bollinger Bands: Price is near the lower band, indicating mild oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (8,52,055) is lower than average weekly volume (11,52,700), showing reduced participation and cautious sentiment.

📌 Momentum Signals: Short-term bounce possible from 530–540 ₹ support, but trend remains weak unless price sustains above 553–561 ₹.

🎯 Entry Zone: 530–540 ₹ (near support, neutral RSI).

🎯 Exit Zone: 553–561 ₹ (short-term resistance), extended resistance at 600–625 ₹.

🔎 Trend Status: Currently consolidating with bearish bias. Reversal requires breakout above 561 ₹.

Positive

• Quarterly PAT surged to 1,571 Cr. from 855 Cr. (+214%).
• EPS of 20.0 ₹ supports earnings base.
• DII holdings increased (+0.92%), showing domestic institutional confidence.
• Debt-to-equity ratio of 0.02 indicates a strong balance sheet.

Limitation

• Stock trading below both 50 DMA and 200 DMA.
• Weak ROCE (8.80%) and ROE (8.77%) compared to peers.
• FII holdings decreased (-1.52%), showing reduced foreign investor confidence.
• Volume participation lower than average, reflecting cautious sentiment.

Company Negative News

• Stock has lost value from its 52-week high (625 ₹ to 540 ₹).
• Profitability ratios remain weak despite earnings growth.

Company Positive News

• Quarterly profit growth (+214%) shows strong operational improvement.
• DII holdings increased, reflecting domestic institutional support.
• Low debt-to-equity ratio ensures financial stability.

Industry

• Industry PE at 33.2 is higher than AMBUJACEM’s P/E (26.2), suggesting relatively attractive valuation.
• Cement sector outlook remains positive with infrastructure demand growth.

Conclusion

⚖️ AMBUJACEM is consolidating near support with weak momentum. Traders may consider entry around 530–540 ₹ with exit near 553–561 ₹. Long-term investors can hold for extended targets near 600–625 ₹, while monitoring RSI and MACD for reversal confirmation.