Technical Portfolio Guide
SANOFI INDIA LTD
CMP: Rs 6,615.00
BSE Code:500674
I have bought shares of Sanofi at Rs 6,400 for short-term. Should I hold or book profits?
- Navin Kumar Jain
BOOK PROFIT IN SANOFI INDIA AT CURRENT MARKET PRICE
Sanofi India Ltd is currently trading at Rs 6,615. Its 52-week high/low stand at Rs 7,225/Rs 5,300 made on December 02, 2019 and June 24, 2019 respectively. The stock had given a breakout of downward sloping channel pattern as on weekend of October 27, 2019 and thereafter, bounced sharply up to its all-time high level. Currently, the stock is trading 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 overbought zone and, at present, its reading is 54.67. The RSI is trading below its 9-week average and it is in falling mode, which indicates further downside momentum. The weekly stochastic oscillator is also suggesting some bearish momentum as per cent K is below the per cent D. Moreover, the daily MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend you to book profit in Sanofi India at current market price.
DEWAN HOUSING FINANCE CORP. LTD
CMP: Rs 16.05
BSE Code: 511072
I am holding shares of DHFL bought at Rs 160, I do not want to exit at loss. What should I do?
- Sandeep Teotia
EXIT DHFL AT CURRENT MARKET PRICE
Dewan Housing Finance Corporation Ltd (DHFL) is currently trading at Rs 16.05. Its 52-week high/low stand at Rs 223.65/Rs 13.30 made on January 25, 2019 and December 13, 2019 respectively. The stock had given a neckline breakdown of triple top pattern as on weekend of September 21, 2018 and thereafter, marked the sequence of lower tops and lower bottoms along with strong volumes. Majorly, the stock is displaying a bearish trend as it is trading below its short and long-term moving averages, that is, 20-week EMA, 50-week EMA, 100-week EMA, and 200-Week EMA. After looking at the daily chart, it can be noticed that it is continuously trading below its 200-day SMA level since September 2018. The leading indicator, 14-period weekly RSI, is currently quoting at 26.92 and it is in super bearish zone. The weekly RSI is not able to cross 60-mark since August 2018. The poor volumes, oscillators and other indicators that are lying below 50, depict a lack of momentum in the stock. Considering all the above factors, we recommend you to exit in DHFL at current market price.
INDIAN OIL CORPORATION LTD
CMP: Rs 118.95
BSE Code: 530965
IOC is trading near its 52-week low, can I enter now?
- Sachin Mourya
AVOID BUYING INDIAN OIL CORPORATION FOR NOW
India Oil Corporation Ltd is currently trading at Rs 118.95. Its 52-week high/low stand at Rs 170.40/Rs 112.30 made on June 03, 2019 and January 22, 2020 respectively. The stock had given a neckline breakdown of Adam and Adam double top pattern as on weekend of March 23, 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 33.33 and it is in falling mode, which indicates a further downward momentum. The weekly stochastic is also suggesting bearish momentum as fast stochastic is trading below its slow stochastic line. The daily and weekly MACD stays bearish as it is trading below its zero line and signal line. Currently, the volumes support the falling prices and oscillators are inclined southward, which suggests more downside from the current levels. Hence, we recommend you to avoid buying India Oil Corporation for now.
ATUL AUTO LTD
CMP: 279.55
BSE Code: 531795
I am holding Atul Auto at Rs 225 for short-term. Should I hold or book profit?
- Vishnu Raghavan
HOLD ATUL AUTO WITH A STOPLOSS OF RS 256 ON CLOSING BASIS
Atul Auto Ltd is currently trading at Rs 279.55. Its 52-week high/low stand at Rs 372.40/Rs 198 made on April 01, 2019 and August 23, 2019 respectively. After registering 52-week low, the stock is trading with gradual higher tops and higher bottoms. Recently, the stock had given a breakout of symmetrical triangle pattern along with robust volumes, which indicates a further upward momentum. Along with this triangle breakout, the stock after a span of almost ten months has successfully close above its crucial long-term moving average, i.e. 200-day EMA. The leading indicator, 14-period daily RSI is currently quoting at 67.65 and it is in super bullish zone. The weekly and daily stochastic oscillator is also suggesting some bullish strength as per cent K is above the per cent D. The daily momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive. Moreover, the other volume-based indicators like OBV and Money Flow Index (MFI) are also very strong. Considering all the above factors, we recommend you to hold Atul Auto with a stop-loss of Rs 256 on closing basis.