Technical Portfolio Guide
ASIAN PAINTS LTD
CMP: Rs1603 BSE
Code:500820
I had bought Asian paints at Rs 1,520. What is its short and near-term outlook?
- Sundaremoorty
BOOK PROFIT IN ASIAN PAINTS AT CURRENT MARKET PRICE
Asian Paints Ltd is currently trading at Rs 1,603. Its 52-week high/low stand at Rs 1,915.90/Rs 1,291.45 made on March 9, 2020 and July 9, 2019 respectively. The stock had formed a reversal hammer like candlestick pattern as on weekend of July 12, 2019 and thereafter, marked the sequence of higher tops and higher bottoms. Considering the daily time frame, the stock had recently given a neckline breakdown of Adam & Adam double top pattern, which suggests correction before another northward movement. Along with this pattern breakdown, the stock has also managed to close below its short and longterm moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. The leading indicator, 14-period daily RSI is currently quoting at 28.78 and it is trading below its nine-day average. The momentum indicator MACD line has crossed under the signal line, which resulted in the histogram turning negative. Moreover, a negative divergence was also spotted at the daily and weekly time frame on the 14-period RSI, which suggest limited upside. Considering all the above factors, we recommend you to book profit in Asian Paints at current market price.
IFCI LTD
CMP: Rs 3.46
BSE Code: 500106
Shall I enter IFCI at CMP for a long-term investment?
- Pawan Kumar Jha
AVOID BUYING IFCI FOR NOW
IFCI Ltd is currently trading at Rs 3.46. Its 52-week high/low stand at Rs 14.37/Rs 3.31 made on April 1, 2019 and March 13, 2020 respectively. The stock had given a breakdown of rising channel as on weekend of March 9, 2018 and thereafter, marked the sequence of lower tops and lower bottoms. Majorly, the stock is displaying a bearish trend as it is trading below its weekly pivot and 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 seen that it has been continuously trading below its 200-day EMA level since February 2018. The leading indicator, 14-period weekly RSI is in super bearish zone and it is not able to cross 60 mark since January 2018. The weekly and daily MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend you to avoid buying IFCI for now.
CITY UNION BANK LTD
CMP: Rs142.70 BSECode:532210
I am holding 80 shares of CUB at an average price of Rs 130. What to do now? Hold or sell?
- Mohit Sekhon
BOOK PROFIT IN CUB AT CURRENT MARKET PRICE
City Union Bank Ltd is currently trading at Rs 142.70. Its 52-week high/low stand at Rs 249/Rs 138 made on January 16, 2020 and March 19, 2020 respectively. Considering the weekly time frame, the stock was trading in rising channel since December 2016. Recently, the stock has given a breakdown of rising channel along with relatively higher volume. With this channel breakdown, the stock has also managed to close below its 100-week EMA and 200-week EMA. The weekly RSI is currently quoting at 22.15 and it is trading below its nine-week average. The weekly and daily MACD stays bearish as it is trading below its zero line and signal line. And the histogram is suggesting a pickup in the downside momentum. 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 book profit in City Union Bank at current market price.
GHCI LTD
CMP:85.75
BSE Code:500171
Can I enter GHCL at current market price?
- Vishu Jaiswal
AVOID BUYING GHCL FOR NOW
GHCL Ltd is currently trading at Rs 85.75. Its 52-week high/low stand at Rs 277.20/Rs 84.05 made on May 28, 2019 and March 19, 2020 respectively. The stock had formed a reversal bearish engulfing candlestick pattern as on weekend of February 02, 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 weekly pivot and 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 18.07 and it is in super bearish zone. The weekly and daily MACD stays bearish as it is trading below its zero line and signal line. And the histogram is suggesting a pickup in the downside momentum. 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 GHCL for now.