Technical Bits: Heidelbergcement India gives consolidation breakout

The stock of Heidelbergcement India Limited gives consolidation breakout on the daily scale along with robust volumes. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The 14-period RSI is currently quoting at 71.20 level. The fast stochastic is also trading above its slow stochastic line, which depicts further upward momentum. The daily MACD stays bullish as it is trading above zero line. Moreover, the other volume-based indicators like OBV and Money Flow index are also very strong.

Going ahead, the stock has strong support in the zone of Rs. 185- 180 as it is the confluence of an unfilled upside gap which was formed on May 20, 2019 and short term 20-day Exponential moving average. While on the higher side any sustainable move above the level of Rs. 200 is likely to open up gates for further rally towards levels of Rs. 210, followed by Rs. 215.

On Monday, the stock of Heidelbergcement India closed at Rs. 198 per share, surged by 10.28 per cent. The stock opened at Rs. 185 per share and hit an intraday high of Rs. 198.50 and a low of Rs. 183.10 per share on BSE.