Technical Portfolio Guide
WELSPUN CORP. LTD.
CMP: Rs147.30
BSE Code : 532144
I am holding shares of Welspun Corp., which I bought at Rs. 120 per share. Kindly, advise me on the price movement in the long term.
- Syed Ahmad
HOLD WELSPUN CORP. WITH STOPLOSS OF RS. 129 ON CLOSING BASIS
Welspun Corp. Ltd. is currently trading at Rs. 147.30. Its 52-week high/low stands at Rs. 164/Rs.89.30, formed on November 22, 2018 and February 18, 2019, respectively. As on the weekend of January 25, 2018, the stock had formed a dark cloud cover candlestick pattern and thereafter entered into the corrective phase. Recently, it gave a symmetrical triangle pattern breakout, together with a relatively higher volume, which indicates further upward momentum. Majorly, the stock is displaying a bullish trend as it is trading above its weekly pivot and short-long term moving averages, that is, 20-week EMA, 50-week EMA, 100-week EMA, and 200-Week EMA. Two days ago, the 50-DMA crossed over the 200-DMA and was termed as the 'golden crossover', which is a long term bullish signal. The RSI has also given out a very bullish sign by braking out of a triangle formation. The fast stochastic is trading above its slow stochastic line as well. The weekly MACD stays bullish as it is trading above its zero line since last five weeks. The histogram is suggesting a pick-up in the momentum. Considering all the factors, we recommend you to hold Welspun Corp. with the stoploss of Rs. 129 on closing basis.
INOX WIND LTD.
CMP: Rs34.75
BSE Code:539083
Considering the tremendous fall in Inox Wind’s stock price, is it a good time to buy this stock?
- Rishi Bhatia
AVOID BUYING INOX WIND FOR NOW
Currently, Inox Wind Ltd. is trading at Rs. 34.75. Its 52-week high/low stands at Rs. 95/Rs.30.80, formed on November 06, 2018 and October 07, 2019, respectively. The stock had formed a bearish engulfing candle on the weekend of April 24, 2015 and thereafter marked the sequence of lower tops and lower bottoms. The major stock trend is negative as it is trading below its weekly pivot and short-long term moving averages, that is, 20-week, 50-week, 100-week, and 200-week EMAs. The lower volumes and oscillators, still tilted southward, point to some more downside for now. From the momentum indicator’s perspective, the 14-period weekly RSI is quoting at 30.44 at present. It was not able to cross the 60 mark since April 2015. Additionally, The Ichimoku on the weekly and daily time frame is clearly giving a negative view as it closed below the Ichimoku cloud, KS and TS lines. Considering all above factors, we recommend you to avoid buying Inox Wind Ltd. for now.
BAJAJ FINANCE LTD.
CMP: Rs4024.90
BSE Code: 500034
I have bought shares of Bajaj Finance after breakout at Rs. 3,100 for short term. Should I hold or book profits?
- Uday Shirodkar
BOOK PROFIT IN BAJAJ FINANCE AT CURRENT MARKET PRICE
Bajaj Finance Ltd. is trading at Rs. 4024.90 at present. Its 52-week high/low stands at Rs. 4,219.50 /Rs. 2,234 made on October 22, 2019 and November 13, 2018, respectively. The stock had given a neckline breakout of Adam and Adam Double bottom pattern as on September 20, 2019 and, subsequently, jumped to its all-time high. The stock formed a reversal bearish engulfing candlestick pattern on October 22, 2019. With this bearish formation, stock also managed to close below its weekly pivot. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 75 zone and, currently, its reading is 57.99. The RSI is trading below its 9-day average and is in a falling mode, which indicates further downside momentum. The daily MACD stays bearish as it is trading below its zero line. Moreover, here has been a negative divergence between the daily RSI, daily stochastic, and the stock price movement, which suggests a limited upside. Considering all above factors, we recommend you to book a profit in Bajaj Finance at the current market price.
RELAXO FOOTWEARS LTD.
CMP: 550.50
BSE Code:530517
I have bought Relaxo Footwears above Rs. 485. Now, I want your suggestions on this stock based on current market conditions.
Bhavik Samani
HOLD RELAXO FOOTWEARS WITH STOPLOSS OF RS. 515 ON CLOSING BASIS
Presently, Relaxo Footwears Ltd. is trading at Rs. 550.50. Its 52-week high/low stands at Rs. 561/Rs. 343.50 made on September 25, 2019 and February 21, 2019, respectively. The stock had formed a reversal hammer candlestick pattern on weekend of November 11, 2016 and marked the sequence of higher tops and higher bottoms after that. Recently, the stock had given an ascending triangle patterns breakout on the daily time frame with strong volumes, which indicates further upside momentum. The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, that is, 20-week, 50-week, 100-week, and 200-week EMAs. These moving averages are exactly in an ascending order, suggesting a strong trend. The leading indicator, 14-period weekly RSI, is in the super bullish zone and is trading above its 9-week average. The weekly stochastic oscillator is also suggesting some bullish momentum as %K is above the %D. Moreover, the daily ADX is very strong at 39.63. The -DI is much below the +DI and ADX is above the -DI and +DI. This shows the technical strength in the stock. Considering all these factors, we recommend you to hold Relaxo Footwears with a stoploss of Rs. 515 on closing basis.