Shares of Ultra Tech Cements today saw over 3% increase in value and closed for the day in NSE at INR 3752 per share with 3.05% increase in value. This uptrend movement of stock has been influenced by two major news that circulates in market today which are announcements regarding Annual General Meeting and Lenders approval for acquisition of Binani Cements Ltd. Ultra Tech currently has 19% market share with Shree Cement commanding 22% of the market, however if this deal gets approval Ultra tech’s market share will rise to 26% making it the biggest supplier in North India. This comes just in time for Annual General Meeting, If this deal is approved Limestone reserves of Binani Cements is expected help boost Ultra-Tech Cements output greatly thereby boosting its profits which is estimated to rise around 6% per quarter.
RSI indicator which is used to measure the momentum of stock based on speed of change in stock price regardless of direction in which price moves is currently in range of 46 to 65 as the signal line continues to move in neutral region with a slight upward incline supportive of existing momentum for upward price growth. Parabolic SAR indicator and ADX crosses indicator which are used to identify good points of entry and exit have both formed bullish signals in intra day charts supportive of continued uptrend price growth in near future trading session. Similarly Zig Zag indicator which is used to predict reversal of trend in longer time frame without being influenced by any short term volatility has also formed uptrend indication supportive of continued bullish price movement. Expected support and resistance levels for the stock for the week are at 3562.42 and 3926.22 respectively.