Technical Portfolio Guide

HFCL LTD 

CMP: Rs 17.90
BSE Code: 500183 

Can I buy shares of HFCL at the current level?
- Mukul Mittal 

AVOID BUYING HFCL LTD FOR NOW 

HFCL Ltd is currently trading at Rs 17.90. Its 52-week high/low stand at Rs 25.30/Rs 16.75 made on March 13, 2019 and October 10, 2019 respectively. The stock witnessed lower tops and slightly similar bottoms after hitting an all time high level. Thereafter, it gave a multiple point upward sloping trendline breakdown at Rs 23.50 and gave almost continuous downfall. The major trend of the stock is bearish as it is trading below its long and short-term moving average, 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 46.48 and it is not above to cross the 60 mark since June 2018. The weekly and daily MACD stays bearish as it is trading below its signal line. Moreover, the Ichimoku chart on weekly time frame is clearly giving a negative view as the stock is trading below its Ichimoku cloud, KS and TS line. Considering all the above factors, we recommend you to avoid buying HFCL for now.

TRENT LTD 

CMP: Rs 539.80
BSE Code: 500251 

I have bought shares of Trent at Rs 480 for short-term, should I hold or book profits?
- Abhishek Saraf 

BOOK PROFIT IN TRENT AT CURRENT MARKET PRICE 

Trent Ltd is currently trading at Rs 539.80. Its 52-week high/low stand at Rs 567.50/Rs 320 made on November 05, 2019 and February 18, 2019 respectively. The stock had given a breakout of horizontal trendline as on weekend of June 07, 2019 and thereafter, marked the sequence of higher tops and higher bottoms. Considering the daily time frame, the stock had formed double top pattern, which suggest correction before another northward movement. Along with this bearish formation, the stock has also formed reversal shooting star like candlestick pattern as on December 30, 2019 and gave confirmation next day. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 68-70 zones and, at present, its reading is 61.61. The fast stochastic is also trading below its slow stochastic line. Moreover, there has been a negative divergence between the daily RSI, daily stochastic and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit in Trent Ltd at current market price.

SUTLEJ TEXTILES & INDUSTRIES LTD 

CMP: Rs 31.65
BSE Code: 532782 

I am holding shares of Sutlej Textiles & Industries Ltd bought at Rs 42 in April, expecting it to bounce back, but it fell more. What should I do?
- Vikas Goel 

EXIT IN SUTLEJ TEXTILES & INDUSTRIES BELOW RS 24 ON CLOSING BASIS 

Sutlej Textiles & Industries Ltd is currently trading at Rs 31.65. Its 52-week high/low stand at Rs 44.90/Rs 24.10 made on January 21, 2019 and August 26, 2019 respectively. The stock had given breakdown of Bump and Run reversal pattern as on weekend of February 09, 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 long and short-term moving averages, that is, 50-week, 100-week, and 200-week EMAs. After looking at the daily chart, it has been continuously trading below its 200-day EMA level from February 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 53.16 and it was not able to cross the 60 mark since January 2018. Moreover, the stock is trading below Ichimoku cloud on weekly time frame. Considering all the above factors, we recommend you to exit Sutlej Textiles & Industries below Rs 24 on closing basis.

ASTER DM HEALTHCARE LTD 

CMP: 160.45
BSE Code: 540975 

I am holding Aster DM healthcare at Rs 140 for short-term. What Should I do?
- Anuj Puri 

HOLD ASTER DM HEALTHCARE WITH THE STOP-LOSS OF RS 155 ON CLOSING BASIS 

Aster DM Healthcare Ltd is currently trading at Rs 160.45. Its 52-week high/low stand at Rs 170.70/Rs 109.70 made on January 01, 2020 and August 07, 2019 respectively. The stock had formed reversal Bullish engulfing candlestick pattern as on October 03, 2019 and thereafter, marked the sequence of higher tops and higher bottoms. Recently, the stock had given breakout of Ascending Triangle pattern on daily time frame along with relatively higher volumes. The stock is trading above all short and long-term moving averages. The 50-DMA crossed over the 200-DMA 18 days ago, called the 'golden crossover', which is a long-term bullish signal. The leading indicator, 14-period daily RSI is currently quoting at 62.06 and it is in bullish zone. The stochastic oscillator is also suggesting some bullish strength as p er cent K is above the per cent D. Moreover, the trend strength indicator ADX is at a healthy level of 21.38 and it is rising further. The directional parameter +DI are much above the -DI. Considering all the above factors, we recommend you to hold Aster DM Healthcare with a stop-loss of Rs 155 on closing basis as it is the confluence of short-term 20-day EMA and upward sloping trendline support.