Technical Portfolio Guide

NESTLE INDIA LTD

CMP: Rs. 14563.35 
BSE Code: 500790

I am holding shares of Nestle, which I bought in Rs 13,300. Kindly enlighten me on its price movement in the short-term.
- Sanjeev Agarwal 

HOLD NESTLE INDIA WITH A STOP-LOSS OF RS 13,980 ON CLOSING BASIS 

Nestle India Ltd is currently trading at Rs 14,563.35. Its 52-week high/low stand at Rs 15,150/Rs 10,028.10 made on October 31, 2019 and March 08, 2019, respectively. The stock had formed a reversal Doji Candlestick pattern as on October 31 and thereafter, witnessed correction. The correction is halted near 23.6 per cent retracement of its last upward move (Rs 10,120.05- Rs 15,146.90) and it coincides with the 50-day EMA level. Recently, the stock had given a neckline breakout of Adam and Eve double bottom pattern along with strong volume. With this neckline breakout, the ADX which shows the strength of the trend, turned upside and moved above the -DI. The major trend of 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. Interestingly, the daily RSI has also given breakout of double bottom pattern, which suggests bullish bias. Moreover, the daily MACD has just crossed above the signal line and zero line and the histogram has also turned into bullish. Considering all the above factors, we recommend you to hold Nestle India with a stop-loss of Rs 13,980 on closing basis.

MANALI PETROCHEMICAL LTD 

CMP: Rs. 17.05 
BSE Code: 500268 

Can I buy shares of Manali Petrochemical as it has fallen tremendously?
 - Naresh Tiwari

AVOID BUYING MANALI PETROCHEMICAL FOR NOW

Manali Petrochemical Ltd is currently trading at Rs 17.05. Its 52-week high/low stand at Rs 33.45/Rs 15.55 made on December 26, 2018 and December 11, 2019, respectively. The stock had formed a reversal Gravestone Doji candlestick pattern as on weekend of June 15, 2018 and thereafter, marked the sequence of lower tops and lower bottoms. The major trend of stock is negative as it is trading below its weekly pivot and short-long term moving averages, i.e. 20-week, 50-week, 100-week and 200-week EMAs. As per the daily chart, it has been continuously trading below its 200-day EMA level from September 2018. The lower volumes and oscillators are lying below 50 depicts lack of momentum in the stock. From the momentum indicators perspective, the 14-period weekly RSI is currently quoting at 41.23 and it was not able to cross the 60 mark since August 2018. Additionally, the stock has been trading below Bollinger band average and Ichimoku Cloud. Considering all the above factors, we recommend you to avoid buying Manali Petrochemical for now! 

DR LAL PATHLABS LTD 

CMP: Rs. 1498 
BSE Code: 539524 

I have bought shares of Dr Lal Pathlabs after breakout at Rs 1,100 for near-term, Should I hold or book profits?
 - Balasubramanium C.

BOOK PROFIT IN DR LAL PATHLAB AT CURRENT MARKET PRICE

Dr Lal PathLabs Ltd is currently trading at Rs 1,498. Its 52-week high/low stand at Rs 1,698/ Rs 893 made on November 19, 2019 and December 31, 2018, respectively. The stock had given a breakout of Horizontal trendline resistance as on weekend of June 21, 2019 and bounced sharply till its all time high level. Recently, the stock had formed a reversal Shooting Star candlestick pattern as on weekend of November 22, 2019. With this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e 20-day EMA and 50-day EMA. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the 80 zone and, at present, its reading is 57.79. The RSI is trading below its 9-week average and it is in falling mode, which indicates further downside momentum. The weekly momentum indicator MACD line has crossed under the signal line, which resulted in the histogram turning negative. Moreover, there has been a negative divergence between the weekly RSI, weekly stochastic and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit in Dr Lal PathLabs at current market price.

ICICI LOMBARD GENERAL INSURANCE CO. LTD. 

CMP: 1419.05 
BSE Code: 540716 

I have bought shares of ICICIGI above Rs 1,250. I would like to know your suggestion for this stock looking at the current market.
 - Jitendra Sinha

HOLD ICICGI WITH A STOP-LOSS OF RS 1,360 ON CLOSING BASIS

ICICI Lombard General Insurance Company Ltd is currently trading at Rs 1,419.05. Its 52-week high/low stand at Rs 1,439.90/Rs 809.60 made on December 26, 2019 and January 28, 2019, respectively. The stock had formed a reversal Long-legged Doji candlestick pattern as on weekend of October 12, 2018 and thereafter, marked the sequence of higher tops and higher bottoms. Recently, the stock had given Ascending Triangle patterns breakout on daily time frame along 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, i.e. 20-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator, 14-period daily RSI is currently quoting at 66.89 and it is in super bullish zone. The weekly stochastic oscillator is also suggesting some bullish momentum as per cent K is above the per cent D. Moreover, the trend strength indicator ADX is at a healthy level of 23.48. The directional parameter +DI is much above the -DI. Considering all the above factors, we recommend you to hold ICICIGI with a stop-loss of Rs 1,360 on closing basis.