Technical Portfolio Guide
BAJAJ ELECTRICALS LTD
CMP: Rs309.50
BSE Code: 500031
Can I buy Bajaj electricals as it is trading near its 52-week low? - Prasad V Bapat
AVOID BUYING BAJAJ ELECTRICALS FOR NOW.
Bajaj Electricals Ltd is currently trading at Rs. 309.50. Its 52-week high/low stand at Rs 587.75/ Rs 306.30 made on April 16, 2019 and November 21, 2019 respectively. The stock had given a breakdown of Bump and Run reversal pattern as on the weekend of September 28, 2018 and thereafter marked the sequence of lower tops and lower bottoms. The major trend of the stock is bearish as it is trading below its weekly pivot and below its long-short term moving averages, that is, 20-week, 50-week, 100-week, and 200-week EMAs. Among the momentum indicators, the 14-period weekly RSI is currently quoting at 29.27 and it has been unable to cross the 60 mark since May 2019. The weekly stochastic oscillator is in the oversold region but is yet to confirm the reversal. The weekly and daily MACD stays bearish as it is trading below its zero line and signal line. Moreover, on the directional index, the bearish strength is still higher than the bullish strength as +DI is much below the -DI. Considering all of the above factors, we recommend you to avoid buying Bajaj Electricals for now.
SRF LTD
CMP: Rs3,144.25
BSE Code: 503806
I have bought shares of SRF at Rs 2,700, Should I hold or book profits? - Vishal
HOLD SRF WITH A STOP LOSS OF RS. 3,040 ON A CLOSING BASIS.
SRF Ltd is currently trading at Rs. 3,114.25. Its 52-week high/low stand at Rs 3,273.95/ Rs 1,906 made on November 20, 2019 and December 26, 2018 respectively. The stock had formed a reversal Bullish Engulfing candlestick pattern as on the weekend of July 27, 2018 and thereafter marked a sequence of higher tops and higher bottoms. Recently, the stock has given a breakout of a Symmetrical Triangle pattern, which indicates further upside momentum. Currently, the stock is trading above its all short and long term moving averages and all the moving averages are trending upside. The stock is meeting Daryl Guppy’s multiple moving averages set up rules as it is trading above both the short and long term moving averages. The leading indicator, 14-period weekly RSI is currently quoting at 65.36 and it is in a super bullish zone. Interestingly, the stock has never been in as oversold condition in the past 7 years on the weekly chart. The MACD stays bullish as it is trading above its zero and signal line. The histogram is suggesting that the momentum is picking up. Moreover, the trend strength is extremely high as the daily ADX is above 50 and -DI is much below the +DI and ADX. Considering all the above factors, we recommend you to hold SRF with a stop loss of Rs 3,040 on a closing basis.
MAGMA FINCORP LTD
CMP: Rs38.95
BSE Code: 524000
Can I buy Magma Fincorp for four months at current price as it has fallen lot? - Jitender Singh
AVOID BUYING MAGMA FINCORP FOR NOW.
Magma Fincorp Ltd is currently trading at Rs. 38.95. Its 52-week high/low stand at Rs 138.20/Rs 37 made on July 02, 2019 and November 20, 2019 respectively. The stock witnessed lower tops and slightly similar bottoms after hitting an all time high. Thereafter, it gave a multiple touch points upward sloping trendline breakdown at Rs 137 and gave almost a continuous downfall with rising volumes where the stock hit below its major support at Rs 80 and Rs 63 levels. Majorly, the stock is displaying a bearish trend as it is trading below its weekly pivot and short-long term moving averages, that is, 20-week EMA, 50-week EMA, 100-week EMA, and 200-Week EMA. The leading indicator, the 14-period weekly RSI is currently quoting at 23.19 and it is in a super bearish zone since July 2019. The stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. Moreover, on the weekly time frame, the stock is trading below its Ichimoku cloud and Bollinger band average line. Considering all the above factors, we recommend you to avoid buying Magma Fincorp for now
SKF INDIA LTD
CMP: 2192.00
BSE Code: 500472
Please suggest what I should do with SKF; I bought at Rs 1,940 for the medium term? - Lavender Singh
BOOK PROFIT IN SKF INDIA AT CURRENT MARKET PRICE.
SKF India Ltd is currently trading at Rs. 2,192.00. Its 52-week high/low stand at Rs 2,290.4/ Rs 1,742.80 made on October 29, 2019 and August 05, 2019 respectively. Considering the weekly time frame, the stock is trading in a rising channel since November 2016. Recently, the stock had touched its upper trendline of rising channel and formed a reversal Shooting star like candlestick pattern as on the weekend of November 01, 2019, which indicates correction before another northward journey. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the overbought zone and, at present, its reading is 64.25. The weekly stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. Moreover, there has been a negative divergence between the daily stochastic and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit in SKF India at the current market price.