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The stock with a market capitalization of over Rs 40,000 crore on 1 July 2022 hit a 52-week high of Rs 2,587 on 15 November 2021. It closed at Rs 2,167 on July 1, 2022.
On the daily chart, ACC made a low of around Rs 1,900 in March 2022 and then rebounded sharply but failed to overcome the resistance of Rs 2,400.
The stock is still trading below the crucial 50 and 200-DMA on the daily chart, which suggests that the long-term trend remains bearish. But a close above Rs 2,185 or the 50-DMA could trigger a bull run.
On the weekly chart also, the stock is trading below the 50-WMA but above the 200-WMA. The stock gained over 3 per cent in a week and fell just over 1 per cent in a month, compared to a fall of over 4 per cent in the Nifty in the same period.
ACC recorded a breakout from the ‘Downing Wedge’ pattern on the weekly time frame, which is a bullish signal. Wedges are triangle patterns that point up or down. A triangle pattern that points down, ie a falling wedge, is called a bullish wedge.
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agencies“On the weekly chart, we can see that the prices have shown a pre-advance of 38.2 per cent, a bounce from the level of Rs 895 (March 2020) to Rs 2,589 (Nov 2021) level. We may see a change in polarity in the prices from around Rs 1,900 level,” said Vidya Sawant, AVP – Technical Research, GEPL Capital.
“Price has given an upward breakout from a ‘falling wedge’ pattern on the weekly time frame. We saw a strong participation in volumes in every move of the stock indicating strength in a positive move,” he said.
The RSI indicator has formed a higher level on the weekly which is indicating bullish momentum.
“Based on the price action and technical parameters, we expect the stock to move towards the Rs 2,400 level. The Rs 2,050 level will act as key support for the downside counter,” recommends Sawant.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)
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