Holcim deal: Charts indicate up to 14% upside for ACC, Ambuja, Adani Ent

Adani Enterprises can rally up to 14 per cent; whereas ACC, and Ambuja Cements can gain another 10 per cent each, indicate charts

Shares of Ambuja Cement and ACC rallied up to 8 per cent on the BSE in Monday's intra-day trade after billionaire Gautam Adani won the race to acquire Swiss cement major Holcim's stake in Ambuja Cements and its subsidiary ACC for $10.5 bn (around Rs 81,361 crore), including the open offers.

The Adani group, through an offshore special-purpose vehicle, announced that it had entered into definitive agreements for the acquisition of Holcim Ltd’s entire stake in two of India’s leading cement companies -- Ambuja Cements and ACC -- the Adani group said in a statement on Sunday. READ MORE

Since the last two years, Adani group shares have hogged the limelight with shares of the flagship company - Adani Enterprises surging over 10-fold. Others like Adani Green, Adani Total Gas, Adani Ports and Special Economic Zone, Adani Power and recently listed Adani Wilmar, too, have logged strong gains.
 

In today's trade, so far, shares of Adani Enterprises have gained 4.6 per cent, hitting an intra-day high of Rs 2,150. Meanwhile, ACC shares have surged 8 per cent and Ambuja Cement has gained 5 per cent as market participants cheered the Adani deal.
 

Going ahead, here's what charts have to say about these stocks:-

Adani Enterprises Ltd (ADANIENT)

Likely target: Rs 2,420

Upside potential: 14%
 

The broader outlook suggests a medium-term support of the 200-day moving average (DMA) positioned at Rs 1,714 level, which the stock has held since August 2020. The shares have since then traded with “Higher High, Higher Low” formation and continued the bullish trend, shows the daily chart. 

At present, the immediate support comes at Rs 2,021, its 50-DMA and as long as the stock trades above Rs 1,800-mark, the uptrend is still intact, shows the weekly chart. The counter may show reversal back to its historic peak of Rs 2,420 mark.  CLICK HERE FOR THE CHART

ACC Ltd (ACC)

Likely target: Rs 2,500 ( if sustains above Rs 2,000)

Upside potential: 10%

There is a formation of “Head and Shoulder” on the weekly chart. The said pattern signals a negative trend and it did break the downward support of Rs 2,000. At current scenario, the stock has shown a firm reversal and as long as the stock trades above Rs 2,000 mark, the price action could see a rally towards Rs 2,500 level.  CLICK HERE FOR THE CHART

Ambuja Cements (AMBUJACEM)

Likely target: Rs 420 (after strong move over 200-DMA)

Upside potential: 10%

After witnessing a severe beating and falling almost 40 per cent from its all-time high of Rs 433 on the breakdown of “Head and Shoulder” pattern, the stock is now back at its 200-DMA placed at Rs 370.50 mark, shows the daily chart. The stock needs to aggressively close above its 200-DMA with addition of follow-up buying to retrieve the losing sentiment. When this happens, the stock price may surge to Rs 420, its next imminent barrier. CLICK HERE FOR THE CHART