Technical Portfolio Guide

RAMA STEEL TUBES LTD 

CMP: Rs 42.60
BSE Code: 539309 

Rama steel looks promising currently. Can I enter the scrip now?
- Swapan Dutta 

AVOID BUYING RAMA STEEL TUBES FOR NOW 

Rama Steel Tubes Ltd is currently trading at Rs 42.60. Its 52-week high/low stand at Rs 126.75/Rs 30.30 made on April 16, 2019 and December 16, 2019 respectively. The stock had formed reversal bearish engulfing candlestick pattern as on weekend of January 19, 2018 and thereafter, marked the sequence of lower tops and lower bottoms. Currently, the stock is trading below its 20-week EMA (49.70), 50-week EMA (68.90), 100-week EMA (90.40) and 200-week EMA (106.95), which indicates a medium and long-term downtrend. After looking at the daily chart, it has been continuously trading below its 200-day EMA level from June 2019. The leading indicator, 14-period weekly RSI is currently quoting at 34.70 and it is not able to cross 60-mark since February 2018. The weekly and daily MACD stays bearish as it is trading below its signal line. Moreover, on the weekly 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 Rama Steel Tubes for now.

BERGER PAINTS INDIA LTD 

CMP: Rs 546.60
BSE Code: 509480 

I have bought shares of Berger Paint at Rs 470, should I hold or book profit?
- Rachana Singh 

HOLD BERGEPAINT WITH THE STOP-LOSS OF RS 509 ON CLOSING BASIS 

Berger Paints India Ltd is currently trading at Rs 546.60. Its 52-week high/low stand at Rs 549.90/Rs 284.40 made on January 16, 2020 and February 18, 2019 respectively. The stock had given breakout of symmetrical triangle pattern as on weekend of August 09, 2019 and thereafter, marked the sequence of higher tops and higher bottoms. Considering the daily time frame, the stock had recently given breakout of symmetrical triangle pattern along with a relatively higher volume, which indicates further upside momentum. 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 price is trading at 42 per cent above the 50-week average and that indicates technical strength of the stock. The leading indicator RSI is currently quoting at 71.79 and it has broken out of the downward channel. The MACD has given a buy signal by moving above the signal line and the zero line. Considering all the above factors, we recommend you to hold Berger Paints India with the stop-loss of Rs 509 on closing basis.

NATIONAL ALUMINIUM CO LTD 

CMP: Rs 47.40
BSE Code: 532234 

I bought National Aluminium at Rs 37 for short-term. Kindly suggest what I should do with it.
- G. Palanisamy 

HOLD WITH THE STOPLOSS OF RS 44.50 ON CLOSING BASIS 

National Aluminium Co Ltd is currently trading at Rs 47.40. Its 52-week high/low stand at Rs 62.95/Rs 36.90 made on January 23, 2019 and August 23, 2019 respectively. Considering the daily time frame, the stock had recently given downward sloping trendline breakout along with relatively higher volumes, which indicates upside momentum. Along with this trendline breakout, the daily ADX which shows the strength of the trend, turned upside and moved above the -DI. Majorly, the stock is displaying a bullish trend as it is trading above its weekly pivot and short and long-term moving averages, that is, 20-day EMA, 50-day EMA, 100-day EMA, and 200-day EMA. The leading indicator, 14-period daily RSI, is currently quoting at 63.95 and it is in rising trajectory, which suggests bullish bias. The daily and weekly MACD stays bullish as it is trading above its zero line. The stochastic oscillator is also suggesting some bullish strength as per cent K is above the per cent D. Considering all the above factors, we recommend you to hold National Aluminium with the stop-loss of Rs 44.50 on closing basis as it is the confluence of 20-day EMA and upward sloping trendline support.

YES BANK LTD 

CMP: 39.95
BSE Code: 532648 

I am holding shares of Yes Bank Ltd bought at Rs 75 in November, expecting it to bounce back, but it fell more. What should I do?
- Devi Meena 

EXIT IN YES BANK AT CURRENT MARKET PRICE 

Yes Bank Ltd is currently trading at Rs 39.95. Its 52-week high/low stand at Rs 285.90/Rs 29.05 made on April 03, 2019 and October 01, 2019 respectively. The stock has formed reversal three black crows candlestick pattern as on weekend of September 07, 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, i.e. 20-week, 50-week, 100-week and 200-week EMAs. The leading indicator, 14-period weekly RSI is currently quoting at 32.07 and it is not able to cross 60-mark since August 2018. The stochastic oscillator is also suggesting some bearish strength as per cent K is below the per cent D. Currently, the volumes support the falling prices and other oscillators are inclined southward, which suggests more downside from the current levels. Considering all the above factors, we recommend you to exit in Yes Bank at current market price.