Technical Portfolio Guide

THIRUMALAI CHEMICALS LTD

CMP: Rs 62.40 BSE Code: 500412

As chemical stocks surged recently, so taking this into consideration, Thirumalai Chemicals look promising! Shall I enter now? - Sanjeev Kumar

AVOID BUYING THIRUMALAI CHEMICALS FOR NOW

Thirumalai Chemicals Ltd is currently trading at Rs 62.40. Its 52-week high/low stand at Rs 103.20/Rs 51 made on April 15, 2019 and August 23, 2019, respectively. The stock had given a breakdown of upward sloping trendline support as on weekend of May 18, 2018 and thereafter, marked the sequence of lower-tops and lower-bottoms. Currently, the stock is trading below its short and long-term moving averages, i.e. 20-week EMA, 50-week EMA, 100-week EMA and 200-week EMA. Among the momentum indicators, the 14-period week RSI is currently quoting at 43.61 and it is in bearish zone. The stochastic oscillator is also suggesting some bearish momentum as per cent K is below the per cent D on weekly time frame. Moreover, on the 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 Thirumalai Chemicals for now.

ASAHI INDIA GLASS LTD

CMP: Rs 254.35 BSE Code: 515030

I have bought Asahi India at Rs 215 for short-term. Should I wait or exit with profits? - Ashish Agarwal

HOLD ASAHI INDIA GLASS (AIS) WITH A STOP-LOSS OF RS 240 ON CLOSING BASIS Asahi India Glass Ltd is currently trading at Rs 254.35. Its 52-week high/low stand at Rs 282.75/Rs 170 made on March 06, 2019 and August 27, 2019 respectively. The stock had formed a reversal dragonfly doji candlestick pattern as on weekend of October 04, 2019 and thereafter, marked the sequence of higher-tops and higher-bottoms. Considering the daily time frame, the stock had recently given a breakout of pennant pattern along with strong volumes, which suggest further upside momentum. The stock is currently trading above its short and long-term moving averages. The 50-DMA crossed over 200-DMA 12 days ago, called the 'golden crossover', which is a long-term bullish signal. All the major indicators suggest a bullish momentum in the stock. The daily RSI (60.54) is in super bullish zone and reached to the prior swing high. MACD is above the zero line and signal line. The MACD histogram suggests a bullish momentum. Moreover, the daily ADX is very strong at 40.93. The +DI is much above the –DI, pointing out strength of the trend is strong enough. Considering all the above factors, we recommend you to hold Asahi India Glass with a stop-loss of Rs 240 on closing basis.

MULTI COMMODITY EXCHANGE OF INDIA LTD

CMP: Rs 1288.60 BSE Code: 534091

I am holding MCX bought at Rs 1,090 for short-term. What to do now? - Rurash Financials

BOOK PROFIT IN MCX AT CURRENT MARKET PRICE

Multi Commodity Exchange of India Ltd (MCX) is currently trading at Rs 1,288.60. Its 52-week high/low stand at Rs 1,442/Rs 643.50 made on January 21, 2019 and February 19, 2019, respectively. The stock had given a downward sloping trendline breakout as on weekend of August 30, 2019 and thereafter, surged sharply up to 52-week high level. Considering the weekly time frame, the stock had formed a reversal shooting star candlestick pattern as on weekend of January 24, 2020 and gave a confirmation next week. Along with this bearish formation, the stock has also managed to close below its short-term moving averages, i.e. 13-day EMA and 20-day EMA. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the 75 zone and, at present, its reading is 61.57. The RSI is trading below its 9-week average, which indicates a further downside momentum. The daily and weekly MACD stays bearish as it is trading below its zero line. Considering all the above factors, we recommend you to book profit in MCX at current market price.

HINDUSTAN ZINC LTD

CMP: 192.45 BSE Code: 500188

I am holding 150 shares of Hindzinc at an average price of Rs 220. What to do now, hold or sell? - Mahendra Patel

EXIT HINDUSTAN ZINC AT CURRENT MARKET PRICE

Hindustan Zinc Ltd is currently trading at Rs 192.45. Its 52-week high/low stand at Rs 291.80/Rs 188.10 made on April 08, 2019 and February 03, 2020 respectively. The stock had given a breakdown of upward sloping trendline support as on weekend of May 31, 2019 and thereafter, it gave a downfall where the stock hit below its major support at Rs 221 and Rs 193 levels. Considering the daily time frame, the stock had recently given a breakdown of symmetrical triangle pattern, which indicates a further downside momentum. The stock is currently trading below its short and long-term moving averages. After looking at the daily chart, it has been continuously trading below its 200-day EMA level from May 2019. The leading indicator, 14-period weekly RSI is currently quoting at 33.95 and it is trading below its 9-week average. The daily and weekly MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend you to exit in Hindustan Zinc at current market price.