In this analysis, we will thoroughly examine the technical aspects of ACC's chart, highlighting the bullish breakout of the falling trendline, bounce from the 100-day Simple Moving Average (SMA), and the solid strength shown by the Relative Strength Index (RSI). Additionally, we will take into account the positive fundamental indicators, such as the better-than-expected EBIDTA and PAT figures. Based on these technical and fundamental factors, we will assess the potential buying opportunity for ACC. Let's proceed with the analysis.
Chart Analysis:
The TradingView chart for ACC reveals several significant technical and fundamental factors that may impact the stock's price action.
Breakout of Falling Trendline:
ACC has experienced a clear breakout of the falling trendline, signaling a potential shift in the stock's trend from bearish to bullish. The breakout suggests increased buying interest from traders and investors, setting a positive tone for further upside potential.
Bounce from 100-day SMA:
The stock's price has rebounded from the 100-day Simple Moving Average (SMA), a key technical indicator used to gauge short-term trends. The bounce from the SMA indicates a potential support level, contributing to the bullish sentiment.
RSI Strength:
The Relative Strength Index (RSI) is showing solid strength, indicating favorable momentum for ACC. A strong RSI suggests that the stock's momentum is in a positive state, supporting the case for potential further upside.
Positive Fundamental Developments:
In addition to the positive technical signals, ACC's fundamental indicators are also encouraging. The company's EBIDTA came in at ₹770 crore, surpassing the expected ₹550 crore. Similarly, the PAT stood at ₹466 crore, significantly higher than the ₹227 crore reported in the previous year. These robust financial results may attract more investor interest in the stock.
Trading Opportunity and Targets:
Considering the strong technical and fundamental factors, a buying opportunity is presented for ACC. Traders may consider initiating a long position at the current market price (CMP) of ₹1948. However, it is essential to acknowledge that the suggested stop loss at ₹1751 is relatively deep. Traders should carefully assess their risk tolerance and consider adjusting the stop loss according to their comfort level.
For the target, the initial level is set at ₹2364, representing a potential upside target based on the stock's bullish outlook.
Conclusion:
The technical analysis of ACC's chart, complemented by the positive fundamental indicators, signals a bullish outlook for the stock. The breakout of the falling trendline, bounce from the 100-day SMA, and strong RSI strength indicate potential further upside. Traders may consider entering a long position at the CMP of ₹1948, with a stop loss set at ₹1751 and an initial target of ₹2364.
As with any investment decision, caution should be exercised, and it is recommended to conduct thorough research and consult with a financial advisor before making any investment choices. Additionally, traders should closely monitor the stock's price action and consider implementing appropriate risk management strategies.
Chart Analysis:
The TradingView chart for ACC reveals several significant technical and fundamental factors that may impact the stock's price action.
Breakout of Falling Trendline:
ACC has experienced a clear breakout of the falling trendline, signaling a potential shift in the stock's trend from bearish to bullish. The breakout suggests increased buying interest from traders and investors, setting a positive tone for further upside potential.
Bounce from 100-day SMA:
The stock's price has rebounded from the 100-day Simple Moving Average (SMA), a key technical indicator used to gauge short-term trends. The bounce from the SMA indicates a potential support level, contributing to the bullish sentiment.
RSI Strength:
The Relative Strength Index (RSI) is showing solid strength, indicating favorable momentum for ACC. A strong RSI suggests that the stock's momentum is in a positive state, supporting the case for potential further upside.
Positive Fundamental Developments:
In addition to the positive technical signals, ACC's fundamental indicators are also encouraging. The company's EBIDTA came in at ₹770 crore, surpassing the expected ₹550 crore. Similarly, the PAT stood at ₹466 crore, significantly higher than the ₹227 crore reported in the previous year. These robust financial results may attract more investor interest in the stock.
Trading Opportunity and Targets:
Considering the strong technical and fundamental factors, a buying opportunity is presented for ACC. Traders may consider initiating a long position at the current market price (CMP) of ₹1948. However, it is essential to acknowledge that the suggested stop loss at ₹1751 is relatively deep. Traders should carefully assess their risk tolerance and consider adjusting the stop loss according to their comfort level.
For the target, the initial level is set at ₹2364, representing a potential upside target based on the stock's bullish outlook.
Conclusion:
The technical analysis of ACC's chart, complemented by the positive fundamental indicators, signals a bullish outlook for the stock. The breakout of the falling trendline, bounce from the 100-day SMA, and strong RSI strength indicate potential further upside. Traders may consider entering a long position at the CMP of ₹1948, with a stop loss set at ₹1751 and an initial target of ₹2364.
As with any investment decision, caution should be exercised, and it is recommended to conduct thorough research and consult with a financial advisor before making any investment choices. Additionally, traders should closely monitor the stock's price action and consider implementing appropriate risk management strategies.
Comment:
Made a high of 2023.