Technical Portfolio Guide

MAZAGON DOCK SHIPBUILDERS LTD 

CMP: ₹4,576.80 

BSE Code: 543237 

Should I enter into Mazagaon Dock stock now? - Mohit J 

WAIT FOR FRESH ENTRY UNTIL THE STOCK CLOSES ABOVE RS 4,780 

After a massive 216 per cent rally in just 13 weeks, the stock has corrected by almost 30 per cent. It retraced 38.2 per cent of the prior rally. With a news flow of defence orders, the stock gained 12.57 per cent in the last three days. The volumes are also higher than the previous week. The price pattern is like a flag and closed at the resistance. It also closed at the 38.2 per cent retracement level of the recent fall. If the stock can close above Rs 4,780 on a weekly closing basis, we may see a Rs 1,000 rally. Buy this stock above Rs 4,780, with a stop loss of a current week low of Rs 4,182. 

AFFLE (INDIA) LTD 

CMP: ₹1,626.80 

BSE Code: 542752 

I Bought Affle last month for the long term. Please suggest a stop loss. - Sunil Purna 

STOCK HAS TECHNICALLY WEAKENED, KEEP STOP LOSS AS PER YOUR RISK APPETITE. 

The stock hit a new all-time high last week and formed a shooting star candle. It declined by 1.43 per cent in the current week, forming a bearish engulfing candle. Do note that back-to-back, bearish candles are not a good sign. The RSI has formed a hidden divergence, and the MACD histogram shows a decline in bullish momentum. The fundamentals have no negatives, but the stock has technically weakened as the profit booking emerged at all-time highs. Try to keep a stop loss as per your risk appetite. 

BHARTI AIRTEL LTD 

CMP: ₹1,547.05 

BSE Code: 532454 

Holding 250 shares of Bharti Airtel; should I book profit now? - R Kuldeep 

LOCK IN YOUR PROFITS WITH A TRAILING STOP LOSS OF RS 1,508. 

You did not mention the entry point. Last week, it broke out of a fresh 9-week ascend-ing base. However, it is not sustaining at higher levels and is declining in the current week, while the RSI has formed a negative divergence. On a daily chart, it formed a bearish engulfing candle and got the confirmation for its implications. The nearest support is at 20DMA of Rs 1,508. Watch the price action at this level. In any case, if it closes below it, it is better to exit. 

ZOMATO LTD 

CMP: ₹254.90 

BSE Code: 543320 

Bought Zomato on your FNI recommendation at Rs 99.20; suggest the course of action. - Rajiv Mehta 

BOOK PARTIAL PROFITS NOW, AND WAIT FOR CONSOLIDATION BREAKOUT FOR A FRESH ENTRY. 

Yes, with earnings momentum picking up in the June 2023 quarter, the stock is poised for a breakout. We recommended this stock based on that backdrop, and since then, it has delivered 280 per cent returns. Over the last three weeks, the stock has been in a counter-trend consolidation, which may continue for another three weeks. The RSI is emerging from the extreme zone, signalling a potential shift. It would be prudent to book partial profits or withdraw your capital and wait for a fresh entry once the stock breaks out of its consolidation phase.