Aditya Birla Capital – Equities at the center of your transactions

About the company:

Aditya Birla Capital Ltd (NS:) is the holding company for the financial services activities of the Aditya Birla Group. Its subsidiaries are strongly present in protection, investment and financing solutions. Subsidiaries are national in scope with over 935 branches and over 200,000 agents/distribution partners and several banking partners. The certificate is trading at a 21.6% discount to its 52-week high. The 52-week high and 52-week low range is Rs 140 to Rs 76.

Technical Notes:

One week delay: (Chart 1)

On a weekly timeframe, from the chart below, you can see that ABCL stock is trading in a bull flag pattern. We can also see that the certificate has crossed the 50-day EMA line and is currently retesting an important resistance level of Rs 112. We expect to see higher levels in the stock supported by higher volumes. The Relative Strength Index (or RSI) is above 50 and the moving average convergence divergence line (or MACD) is crossing the signal line. It shows a positive momentum on the action. Long-term investors can enter once the scrip breaks through and holds above the Rs 112 level. They should hold the stop loss at Rs 96 (previous swing low) on a weekly closing basis.

One day delay: (Chart 2)

Over a daily period, the certificate formed a Double Bottom formation. We can also see that during the current week, the stock broke through an important resistance level of Rs 105, reached a high of Rs 110 and then fell back to a support level of Rs 105. It rebounded and has now closed above the second resistance level of Rs 109. We expect the certificate to rise, helped by rising volumes. The RSI is above 55 and the MACD line is above the signal line indicating positive momentum on the stock. Positional traders can enter at current levels. However, they should maintain the stop loss at Rs 105 on a daily closing basis.
ABCL2

Conclusion:

We expect ABCL stock to maintain a positive bias and head higher in subsequent trading sessions. Short-term traders can enter at current levels. However, they are expected to maintain a strict stop loss at Rs 106 on a daily closing basis.

Sallie R. Loera