Technical Portfolio Guide

ATUL LTD 

CMP: Rs4246.90
BSE Code: 500027 

I have bought shares of Atul at Rs. 3600 for short term, Should I hold or book profits?
- S. C Jain 

BOOK PROFIT IN ATUL 

Atul Ltd is currently trading at Rs. 4,246.90. Its 52-week high/low stand at Rs 4,379.20 (October 29, 2019)/Rs 3,260 (December 11, 2018). On the weekly time frame, the stock is trading in a rising channel since March 2017. Recently, the stock formed a reversal Shooting star candlestick pattern near the upper trendline of the rising channel. With this bearish formation, the stock has also managed to close below its weekly pivot and short term moving averages, ie the 8-day EMA and the 13-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 70 zone and, at present, its reading is 57.79. The RSI is trading below its 9-day average and is in a decline mode, which indicates further downside momentum. The fast stochastic is also trading below its slow stochastic line. The momentum indicator MACD line has crossed the signal line on the lower side, which resulted in the histogram turning negative. Moreover, there has been a negative divergence between the daily RSI, daily stochastic and the stock price movement, which suggests limited upside. Considering all of the above factors, we recommend profit booking in Atul at the current levels.

DLF LTD. 

CMP: Rs192.45
BSE Code: 532868 

What are the prospects of DLF? I have bought this stock @ Rs144 for the long term. Please let me know.
- Vishnu Naghavan 

HOLD DLF WITH A STOPLOSS OF RS174 ON A CLOSING BASIS. 

DLF is currently trading at Rs 192.45. Its 52-week high/low stand at Rs 209.40 (April 03, 2019) /Rs 133.90 (October 01, 2019). On the daily time frame, the stock had given a Neckline breakout of Adam and Adam double bottom pattern and thereafter bounced sharply. The major trend of the stock is bullish as it is trading above its weekly pivot and short-long term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. The leading indicator, 14-period weekly RSI, is currently quoting at 58.41 and it is in a bullish zone. The stochastic oscillator is also suggesting some bullish strength as %K is above the %D. The daily and weekly MACD stay bullish as they trade above the zero line. Moreover, the ADX is very strong at 30.91. The -DI is below the +DI and ADX is above the -DI. This shows technical strength in the stock. Considering all of the above factors, we recommend you to hold DLF with a stop loss of Rs 174 on a closing basis as its price is positioned at the confluence of the 200-day EMA and the horizontal support. 

NCL INDUSTRIES LTD 

CMP: Rs91.90
BSE Code: 502168 

I am holding 1,000 shares of NCL Industries, bought at Rs 130/share. At present, the stock is showing no momentum. What should I do?
- Debabrata Debnath 

EXIT NCL INDUSTRIES 

NCL Industries Ltd is currently trading at Rs 91.90. Its 52-week high/low stand at Rs 162 (May 31, 2019)/ Rs 85 (October 30, 2019). The stock formed a reversal Graveston Doji like pattern as on the week ended January 25, 2018, and then fell, making lower tops and lower bottoms till it hit its 52-week low. Currently, the stock is trading below its 20-week EMA (108.30), 50-week EMA (125.55), 100-week EMA (142.50) and 200-week EMA (141.90), which indicates a medium-long term downtrend. The oscillators and indicators are still tilted southwards and point to some further downside from the current prices. From the momentum indicators perspective, the 14-period weekly RSI is currently quoting at 34.03 and it failed to cross the 60 mark since February 2018. 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 of the above factors, we recommend you to exit NCL Industries at the current levels. 

CREDITACCESS GRAMEEN LTD 

CMP: 692.90
BSE Code: 541770 

I am holding stocks of CreditAccess Grameen at an average price of Rs 500. Should I continue to hold this scrip? - Gaurav Gaur 

HOLD CREDITACCESS GRAMEEN WITH A STOPLOSS OF RS 620 ON A CLOSING BASIS. 

CreditAccess Grameen Ltd is currently trading at Rs 692.90. Its 52-week high/low stand at Rs 720 (November 06, 2019) / Rs 321.75 (November 07, 2018). Considering the weekly time frame, the stock is trading in a rising channel since September 2018. Recently, the stock had given a Symmetrical triangle pattern breakout along with strong volume, which indicates further upside momentum. Currently the stock is trading above the short term and long term moving averages and meeting all rules of Daryl Guppy’s GAMMA setup, a combination of 12 different moving averages. The leading indicator 14- period weekly RSI is in a bullish zone and on the daily chart, it has recently given a downward sloping trendline breakout. The weekly stochastic oscillator is also suggesting some bullish momentum as %K is above the %D. Moreover, the weekly MACD stays bullish as it is trading above its zero line and signal line since the last nine weeks. Considering all of the above factors, we recommend you to hold CreditAccess Grameen with a stoploss of Rs 620 on a closing basis as it is at the confluence of 50-day EMA and upward sloping trendline support.