In the previous session, the market extended its gain in yet another day. The Nifty index opened on a positive note and made a high near 17250 level. Technically, Index formed a bullish candle on the chart and closed with a net gain of 147 points. The index also managed to close above Middle band Bollinger support which indicates bullishness in the market. Traders should be focused on ‘buy on dips’ strategy for the next trading day.

Look at the below research report of ‘Wednesday, December 29, 2021’ before the market opens.

Shree Cement Ltd

On the daily chart, we can see that prices have formed a ‘Double Bottom Pattern’. Since a few trading sessions, prices are facing multiple hurdles near 26600 levels. In the previous session, stock retested the higher level and closed above the neckline of the pattern with a bullish candle. Prices are comfortably close near the Parabolic SAR which suggest a bullish trend is intact and we can expect upside momentum to continue from support levels.

The important thing to witness is that the stock is showing divergence with the RSI indicator. The positive divergence happens when the stock prices make lower lows but at the same time indicator makes higher lows. As shown on the chart, price went down but the RSI indicator is going towards upside which indicates positive momentum

In short, Shree Cement looks to be at a crucial juncture but with bullish up move expectations. Due to volatility in the market, positions can be created above previous day’s high above 26750 levels, which can take prices towards 27635 levels. On the other side, the level of 25600 will act as key support for the stock.

Check More Analysis on SHREECEM at: Shree Cement Ltd