Break out Stocks by Nilesh Kotak

⭐ Momentum Buy for 4 September 2026

⭐⭐⭐⭐☆ Alembic Ltd.

Trade Setup

Execution rule: Buy Alembic Ltd. only around the recommended trigger of Rs. 110 after it sustains above this level. Avoid entering at a substantially higher price after a sharp gap-up.

Sell 50% of the position at Rs. 116. After Target 1 is achieved, raise the stop-loss on the remaining 50% to the cost price of Rs. 110 and hold for Target 2 of Rs. 119.

Why Buy Alembic Ltd.?

Alembic Ltd. closed at Rs. 109.51 after gaining 9.36% in the latest session. The stock has advanced 6.56% over one week and 25.67% over one month, confirming powerful short-term momentum.

The price is trading comfortably above its 20-day, 34-day, 50-day and 200-day moving averages. This moving-average structure shows that buyers have regained control across multiple timeframes.

MACD stands at 3.86, above its signal line of 2.34, with a positive histogram of 1.52. This confirms strengthening bullish momentum. ADX at 33.57 indicates a strong trend, while +DMI of 50.01 is substantially above −DMI of 8.31, showing clear buyer dominance.

Trading volume surged to approximately 3.50 crore shares, significantly above normal participation. This volume expansion improves the credibility of the latest price move.

However, RSI at 75.18, Stochastic RSI at 100 and CCI at 174.98 show that the stock is short-term overbought. Therefore, this is a disciplined momentum trade—not a stock to chase at any price.

Recent Performance

Trend Analysis

The supplied trend data continues to classify the 63-day trend as bearish. However, Alembic is now trading above its 200-day SMA of Rs. 92 and 200-day EMA of Rs. 93.69, indicating that the longer-term structure is improving.

Price Structure

Alembic is trading above the upper Bollinger Band of Rs. 107, reflecting strong breakout momentum. Parabolic SAR support is placed at Rs. 96.64, while the intraday pivot point is Rs. 109.25.

Immediate Camarilla resistance is located at Rs. 111.09, followed by Rs. 114.24 and Rs. 118.97. The first target of Rs. 116 is positioned near the 52-week high of Rs. 117.72, while Rs. 119 represents a potential breakout extension.

Key Trading Levels

Final Verdict

Alembic Ltd. qualifies as a strong 5–7-day momentum trade because of its positive MACD, strong ADX/DMI structure, moving-average breakout and exceptional volume. However, elevated RSI makes strict entry discipline essential. Buy only above Rs. 110, not at a significantly higher rate.

Nilesh Kotak View

Alembic Ltd. has generated a powerful price-and-volume breakout, with buyers firmly in control. Buy above Rs. 110 with a strict stop-loss at Rs. 103. Book 50% profit at Rs. 116 and trail the remaining quantity at the cost price for Rs. 119. As the stock is already overbought after a 9.36% single-day rise, avoid chasing it beyond the recommended entry level.