Technical Portfolio Guide
PREMIER EXPLOSIVES LTD
CMP: Rs 141.20
BSE Code: 526247
Premier Explosive is trading near its all time low, may I enter now?
- Sravan Kumar
AVOID BUYING PREMIER EXPLOSIVES FOR NOW!
Premier Explosives Ltd is currently trading at Rs 141.20. Its 52-week high/low stand at Rs 276/ Rs 129.25 was made on January 23, 2019 and December 11, 2019 respectively. The stock had given neckline breakdown of Adam and Adam double top pattern as on weekend of March 09, 2018 and thereafter it marked the sequence of lower tops and lower bottoms. The major trend of the stock is bearish as it is trading 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 31.68 and it is trading below its 9-week average. The weekly RSI is not able to cross 60 mark since July 2017. The weekly MACD stays bearish as it is trading below its zero line and signal line. Moreover, on the directional index, the bearish strength is higher than the bullish strength as +DI is much below the -DI. Considering all the above factors, we recommend you to avoid buying Premier Explosives for now.
TATA CONSULTANCY SERVICES LTD
CMP: Rs 2228.65
BSE Code: 532540
What are the prospects of TCS? I have bought its shares at Rs 2,000 for the short-term. Please let me know.
- Milan Panchal
HOLD TCS WITH STOP-LOSS OF RS 2,110 ON CLOSING BASIS
Tata Consultancy Services is currently trading at Rs 2,228.65. Its 52-week high/low stand at Rs 2,296/Rs 1,809.55 made on September 03, 2019 and January 15, 2019 respectively. The stock had marked a high of Rs 2,284.95 in the month of October 2019 and thereafter, witnessed the correction. The correction is halted near upward sloping trendline support, where it had formed reversal Hammer Candlestick pattern. Along with this bullish formation, the stock has formed Double bottom pattern on daily time frame and gave neckline breakout on December 17 along with relatively higher volumes. The major trend of stock is bullish as it is trading above its weekly pivot and above its long and short-term moving averages. The leading indicator, 14-period daily RSI is currently quoting at 64.29 and it is in the rising trajectory, which suggests bullish bias. The stochastic oscillator on daily and weekly chart is also suggesting some bullish strength as per cent K is above per cent D. Moreover, the daily and weekly MACD stays bullish as it is trading above its zero line. The histogram is suggesting a pickup in momentum. Considering all the above factors, we recommend you to hold TCS with a stop-loss of Rs 2,110 on closing basis.
KEI INDUSTRIES LTD
CMP: Rs 433.80
BSE Code: 517569
I have bought shares of KEI industries at an average price of Rs 300. It has fallen drastically in the last couple of weeks. Kindly suggest what to do.
- Khandelwal
BOOK PROFIT IN KEI INDUSTRIES AT CURRENT MARKET PRICE
KEI Industries Ltd is currently trading at Rs 433.80. Its 52-week high/low stand at Rs 614.70/Rs 306 made on October 30, 2019 and February 19, 2019 respectively. After registering an all time high, the stock had marked sequence of lower tops and lower bottoms. Considering the weekly time frame, the stock had recently given breakdown of upward sloping trendline support. With this, the stock has also managed to close below its short and long-term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. From the momentum indicators perspective, the leading indicator, 14-period weekly RSI is currently quoting at 39.81 and it has also given breakdown of upward sloping trendline support. The RSI is trading below its 9-week average and it is in falling mode, which indicates further downside momentum. The daily MACD stays bearish as it is trading below its zero line and signal line. The weekly MACD line has crossed under the signal line, which resulted in the histogram turning negative. Considering all the above factors, we recommend you to book profit in KEI industries at the current market price.
HOUSING DEVELOPMENT FINANCE CORP. LTD
CMP: 2414.05
BSE Code: 500010
I have bought 100 shares of HDFC at Rs 2,120 for the short-term. What should I do now?
- S. Shetye
HOLD HDFC WITH STOPLOSS OF RS 2,310 ON CLOSING BASIS
Housing Development Finance Corporation Ltd is currently trading at Rs 2,414.05. Its 52-week high/low stand at Rs 2,459/Rs 1,821.55 made on December 18, 2019 and February 27, 2019 respectively. Considering the weekly time frame, the stock is clearly in uptrend since February 2016 as it is making higher highs and higher lows. Recently, the stock had given breakout of Cup and Handle pattern on daily time frame along with strong volumes. 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 daily RSI is currently quoting at 66.68 and it is in super bullish zone. The daily and weekly MACD stays bullish as it is trading above zero line and signal line. The histogram indicating the bullish momentum is picking up. Moreover, the Directional index ADX is also showing the strength in the stock. The daily ADX is very strong at 25.14. The -DI is much below the +DI and ADX is above the -DI. This shows the technical strength in the stock. Considering all the above factors, we recommend you to hold HDFC with the stop-loss of Rs 2,310 on closing basis as it is the confluence of short-term 20-day moving average and upward sloping trendline support.