Ambuja Cement: VWAP RSI & Holcim Contract Renewal

Ambuja Cement VWAP, RSI, and several indicators show positive numbers due to recent news about approval of the renewal of the technology agreement with Holcim. Today, this led to increase in 5% share value of Ambuja Cement . On 24th December, it had an upper circuit price close to 272 and a lower circuit price of 213.

Ambuja Cement Intra Day Chart

Holcim is a Swiss cement company that merged with LaFarge on 10th July 2015. Holcim has an investment of 61.62% of shares in Ambuja Cements. Ambuja cement pays certain fees for technology and support infrastructure and related services to Holcim.

In terms of moving averages, Ambuja Cements share price is trading above 5, 100, and 200-day moving averages but lower than 20, & 50-day moving averages.

The RSI is trading above 55 from Morning(24th Dec 2020), and volume has been mixed in terms of buying and selling of shares.

Additionally, Ambuja Cement declared an interim dividend of Rs17 per share as per board meeting date 22nd October 2020.

As of writing, the Price is trading below the VWAP level. However, there was a crossover of Supertrend and VWAP during the opening trade.

crossover of Supertrend and VWAP

Pivot value indicates first support at Rs 245 and second support at Rs 239.

Pivot resistance is at Rs 254 and Rs 257 per latest price movement.

The 30 minute time interval charts show 137 as the lowest trade zone but that happened during the initial pandemic impact on the stock market.

Corona Pandemic impact on Ambuja Cement Share Price

In Futures trading, 26,844,00 contracts have been traded for December expiry.

Ambuja Cement was founded in 1983 with headquarter based in Mumbai, India. Neeraj Akhoury is the current CEO and managing director. Even during a pandemic, Ambuja Cement posted a net profit of 44,053.00 ( in crore) in the 3rd quarter of 2020.

Regarding the shareholding pattern, foreign institutions have a 16.75% stake in equity. Overall promoters have a 63.3% of stake in Ambuja Cement equity.

In an options contract, the highest OI is at strike price 250, 255, 260, 265, and 270 on the call side. On the put side, 245, 240,235,230, and so on. Usually, equity OI is highest in an interval of fives and tens but that does not determine the support and resistance levels.

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