Technical Portfolio Guide

RITES LTD 
CMP: Rs263.80 
BSE Code: 541556 

I have bought Rites at Rs. 250 for the short term. Should I wait or exit with profits? 
- Rajeev Bansal 

BOOK PROFIT IN RITES AT CURRENT MARKET PRICE 

Rites Ltd. is currently trading at Rs. 263.80. Its 52-week high/low stand at Rs. 295.50/Rs. 160.48 made on October 11, 2019 and February 02, 2019, respectively. As on September 24, 2019, the stock had given an Ascending Triangle patterns breakout and thereafter bounced sharply till its all-time high level. Recently, the stock had formed bearish reversal Shooting Star like candlestick pattern on October 11, 2019, followed by Bearish engulfing candle. With this bearish formation, the stock has also managed to close below its weekly pivot and short term moving averages, i.e. 8-day EMA and 13-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 75 zone and, at present, its reading is 54.93. The RSI is trading below its 9-day average and it has also managed to close below its previous swing low, which indicates further downside momentum. The fast stochastic is also trading below its slow stochastic line. Moreover, the negative divergence is clearly visible between the daily RSI, daily stochastic, and the stock price movement, which suggests a limited upside. Hence, we recommend you to book profit in Rites Ltd. at current market price.

ADANI TRANSMISSION LTD. 

CMP: Rs232 
BSE Code: 539254 

I am thinking of entering Adani transmission for long term investment. Let me know what I should do? - Rajesh Kumar 

BUY ADANI TRANSMISSION ONLY ABOVE RS 255 ON WEEKLY CLOSING BASIS. 

Adani Transmission Ltd. is currently trading at Rs. 232. Its 52-week high/low stand at Rs. 256.30/Rs. 151.5 made on November 28, 2018 and October 26, 2018, respectively. The stock had formed reversal Shooting star like candlestick pattern as on weekend of January 19, 2018 and thereafter witness correction. The correction is halted near 61.8 per cent Fibonacci retracement level of its previous upward move stared form March 2016 to its all-time high level and it is coincides with 100-week EMA level. Considering the weekly time frame, the stock is trading in Ascending Triangle pattern since January 2018. The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-week, 50-week, 100-week and 200-week EMAs. The leading indicator 14-period weekly RSI is currently quoting at 54.91 and it is trading above its 9-week average. The weekly MACD is trading above the zero line and signal line. The histogram is suggesting that the upward momentum is picking up. However, for any further upside, the stock needs to sustain and weekly close above the upper trendline of Ascending Triangle pattern along with decent volume. Hence, we recommend you to buy Adani Transmission only above Rs. 255 on weekly closing basis.

MUSIC BROADCAST LTD. 

CMP: Rs31 
BSE Code: 540366 

Can I buy Music broadcast as it has fallen tremendously? 
- Subramanian 

AVOID BUYING MUSIC BROADCAST FOR NOW 

Music Broadcast Ltd. is currently trading at Rs. 31. Its 52-week high/low stand at Rs. 68.40/ Rs. 30.50 made on November 07, 2018 and October 17, 2019, respectively. The stock had formed a reversal Bearish Harami candlestick pattern as on weekend of January 19, 2018 and thereafter marked the sequence of lower tops and lower bottoms. The major trend of stock is bearish as it is trading below its weekly pivot and short to long term moving averages, i.e. 20-week EMA, 50-week EMA, and 100-week EMA. The 14-period weekly RSI is in a super bearish zone and it has not able to cross 60 mark since January 2018. The weekly MACD stays bearish as it is trading below its zero line and signal line. The stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. Moreover, the volumes are very low and other oscillators are also lying below 50 and are tilted southward. Considering all above factors, we recommend you to avoid buying Music Broadcast for now.

OIL INDIA LTD. 

CMP:163.10 
BSE Code: 533106 

I am holding oil India at Rs. 144.20 for short term. Should I hold or book profit? 
- Anmol Patel 

HOLD OIL INDIA WITH THE STOPLOSS OF RS. 150 ON CLOSING BASIS. 

Oil India Ltd. is currently trading at Rs. 163.10. Its 52-week high/low stand at Rs. 212/Rs. 139.65 made on October 17, 2018 and August 23, 2019, respectively. Considering the daily time frame, the stock had formed an Adam and Adam double bottom pattern. On October 15, 2019, the stock has managed to close above Neckline of double pattern and downward sloping trendline, along with relatively higher volume. With this trendline breakout, the daily ADX which shows the strength of the trend, turned upside and moved above the -DI. The short and medium term trend is positive as stock is trading above its weekly pivot and short-medium term moving averages, i.e. 20-day EMA, 50-day EMA, and 100- day EMA. The leading indicator, 14-period daily RSI, is in bullish zone and it has recently given a downward sloping trendline breakout. The daily MACD is trading above the zero line since last two trading sessions. The histogram is suggesting that the upward momentum is picking up. Considering all above factors, we recommend you to hold Oil India with the stoploss of Rs 150 on closing basis.