Technical Bits: UltraTech Cement forms sizeable bearish candle

UltraTech Cement formed a sizeable bearish candle below the horizontal support level of Rs. 3,725, on Friday. The breakdown was supported by volume spurt, which suggest bears are in a dominating position.   

The stock was trading below its 20-day EMA (3833), 50-day EMA (3877), 100-day EMA (3904) and 200-day EMA (3944), which indicates that the stock is in a medium-long term downtrend. The 14-period day RSI is quoting around 26 and it has recently entered the oversold zone. The other indicators and oscillators were tilted southwards, point to some more downside for now. 

In the near term, Rs. 3,300-Rs. 3,250 is likely to act as a strong support, a decisive close below this zone will be negative for the stock, while on the upside 20-day EMA is likely to act as a strong resistance which is currently placed around Rs .3,833 level.

UltraTech Cement Limited is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement in India. It is also one of the leading cement producers globally. On Friday, the stock of UltraTech Cement Limited closed at Rs. 35,13.75 per share, dipped by 7.30 per cent. The stock opened at Rs. 3,850 per share and hit an intraday high of Rs. 3,850 and a low of Rs. 3,484.05 per share on BSE.