Technical Portfolio Guide
SUBEX LTD.
CMP: ₹ 33.60
BSE Code: 532348
I am holding Subex shares at Rs 50. What should I do?
- Mukul Sabharwal
CONSIDER SQUARING OFF YOUR POSITION AT CMP
The stock is approximately 33 per cent below your buying price. It is under tremendous selling pressure as the market sentiments have badly affected the stock price. It has fallen about 25 per cent in the past three weeks. The technical chart indicates extreme bearishness, as the stock trades below all the key short-term and long-term moving averages. The 14-period daily RSI is in the bearish territory while the daily ADX is at 32, indicating an extreme downtrend of the stock. The difference between the stock price and 20-DMA is over negative 20 per cent, which points towards aggravated momentum on the downside. Moreover, the stock is trading at a 11-month low, which is not a positive sign. Overall, the picture is quite bearish as the current price action does not show any signs of reversal. Thus, it would be a wise decision to get out of the stock at CMP.
VISA STEEL LTD.
CMP: ₹ 13.40
BSE Code: 532721
Should I buy Visa Steel at CMP?
- Gaurang Dave
CONSIDER ENTERING AT CMP WITH A STOP LOSS AT RS 12.5
The stock has corrected significantly by about 35 per cent since its recent high of Rs 18.90. However, on Wednesday, the stock had formed a morning star pattern on the daily timeframe, which is a sign of reversal. The stock took the support of its 200-DMA and has bounced back sharply. This price action is supported by good volumes. The momentum oscillators are also pointing towards the improved strength in the stock. Moreover, the stock is quite oversold as described by the technical indicators, and thus, a bounce-back can yield you good returns. You can consider entering at CMP for a short-term target of about Rs 15, followed by Rs 16. However, if market sentiments hit hard on the stock, maintain a strict stop-loss at Rs 12.5, which happens to be its 200-DMA. A word of caution to note here is that the stock is very volatile, and hence, it would be advisable to keep your trading position light.
GMR INFRASTRUCTURE LTD.
CMP: ₹ 34.55
BSE Code: 532754
What is the short-term outlook for GMR Infrastructure?
- Pradip Narkhede
THE STOCK WILL TURN BULLISH ABOVE RS 42
The stock has shown a dismal performance lately and slipped over 5 per cent since its recent swing high. The volumes have been low, which indicates below-par participation in the stock. The stock is below all the short-term moving averages and seems to be under pressure for some time. The technical parameters do not show much movement in the stock while the oscillators point towards slight bearishness. Things will turn around for the stock if it crosses above Rs 42 with heavier volumes. The level of Rs 42 happens to be its prior swing high and also, the 20-day short-term moving average. A surge above this level would witness the stock catching huge upside momentum, which may turn bullish for the short term.
INDIAN ENERGY EXCHANGE LTD.
CMP: ₹ 193.45
BSE Code: 540750
Please suggest buying level for IEX.
- Vishnu Vardhana Reddy
BUY ABOVE RS 224
The stock of IEX has been hammered due to bad market conditions. It has slipped over 24 per cent in the past one month. The stock trades below its 200-DMA and other short-term indicators. The volumes recorded were below-average lately, which indicates less participation in the stock. The 14-period daily RSI is below 30 and is in the bearish zone. Moreover, other momentum oscillators are pointing towards negative sentiment. Thus, it would be advisable to wait for some clarity in the stock. The stock doesn’t show any bullishness, and thus, is not favourable for buying at this point in time. The 20-day moving average happens to be at the level of Rs 224. If the stock crosses above this level with more-than-average volumes, we can expect it to perform exceptionally level. Thus, keep a watch on the above-mentioned level of Rs 224.