Trendline breakthrough signal 'buy' from Aditya Birla Capital

Trendline breakthrough signal 'buy' from Aditya Birla Capital

Trendline breakthrough signal 'buy' from Aditya Birla Capital

Derivatives data indicated a 4.19 percent increase in the February series futures. Sudeep Shah suggests building up a position in the stock between Rs. 188 and Rs. 186, with a stop loss of Rs. 180. In the near run, it is probably going to attempt the Rs 200 level on the upside, then the Rs 206 level.

On January 8, at 10:30 AM, Aditya Birla Capital's shares were up 1.44 percent at Rs 190.30 after the company's stock displayed a breakout of its daily horizontal trendline.

"Both the stock's short- and long-term moving averages are being crossed by the stock. The 20, 50, and 100-day moving averages are beginning to gather steam. There was substantial volume to back the breakthrough. The stock also had a significant increase. Head of futures and technical analysis at SBI Securities Sudip Shah said that the breakout day, which has formed a candle, lends power to the breakout.

Shah emphasized that the daily RSI is in a very positive zone and is rising, in accordance with the RSI range shift criteria, among the momentum indicators. With a quote above both its zero and signal lines, the daily MACD is still optimistic. Bullish upward momentum is shown by the MACD histogram.

Regarding derivatives, the February series futures had an increase of 4.19 percent. The cumulative open interest (OI) for the current, next, and distant series in Khala has decreased by around 1%, suggesting a general uptick in short-covering. On the put side, large open interest is concentrated around the 180 strike, whilst a notable concentration of call open interest is seen between the 190 and 200 strikes.

The options series indicates a definite build-up of long positions between the call strike of 187.50 and 197.50. On the put side, however, significant put writing has been seen between 195 and 182.50 strikes. This demonstrates the stock's bullishness unequivocally, said Shah.

Bullish factors are supported by these technical and derivative considerations. Shah thus advised building up stock in the Rs 188–186 range with a Rs 180 stop loss. In the near run, it is probably going to attempt the Rs 200 level on the upside, then the Rs 206 level.