Technical Portfolio Guide

TECH MAHINDRA LTD                                           

CMP: Rs 517.90                           
BSE Code:532755 

Please suggest what should I do with TechM that I bought at Rs 530 for short-term?
- Rahul Oswal

EXIT TECH MAHINDRA BELOW RS 500 ON CLOSING BASIS
Tech Mahindra Ltd is currently trading at Rs 517.90. Its 52-week high/low stand at Rs 846/Rs 470.25 made on May 2, 2019 and March 23, 2020 respectively. The stock had formed a reversal spinning top candlestick pattern as on February 19, 2020 and thereafter, marked the sequence of lower tops and lower bottoms. Considering the daily time frame, the stock is trading in a bearish flag of pattern since the last 14 trading sessions. The major trend of the stock is bearish as it is trading below its short and long-term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. Eight trading sessions ago, the 200-DMA crossed over 50-DMA and was termed as the 'death crossover', which is a long-term bearish signal. The leading indicator, 14-period weekly RSI, is in super bearish zone and it is trading below its nine-week average. The weekly MACD stays bearish as it is trading below its zero line and signal line. In case the stock sustains below and closes below the lower trendline of the flag pattern, which is currently quoting at Rs 500, it may extend its southward journey. Hence, we recommend you to exit Tech Mahindra below Rs 500 on closing basis.

GLAXOSMITHKLINE PHARMACEUTICALS LTD       

CMP: Rs 1473.00         
BSE Code:500660

I have bought 200 shares of Glaxo at Rs 1,250 after breakout. What should I do now?
- Devang Shah

HOLD GLAXO WITH A STOP-LOSS OF RS 1,337 ON CLOSING BASIS
GlaxoSmithKline Pharmaceuticals Ltd is currently trading at Rs 1,473. Its 52-week high/low stand at Rs 1,745/Rs 1,046.40 made on January 29, 2020 and March 13, 2020 respectively. The stock has formed a reversal long-legged doji as on January 29, 2020 and thereafter; fell sharply up to its 52-week low. Recently, the stock had given a neckline breakout of Adam & Adam double bottom pattern on the daily time frame along with strong volume, which indicates a further northward momentum. Along with this pattern breakout, the stock has managed to close above its weekly pivot and long and short-term moving averages. The 14-period RSI on the daily chart is in a rising trajectory, which suggests bullish bias. The weekly RSI is trading above its nine-week average. Moreover, the weekly fast stochastic is trading above its slow stochastic line. The 50-day EMA is likely to act as a strong support, which is currently placed at Rs 1,337 and it coincides with 50 per cent Fibonacci retracement level of the recent upward move. Hence, we recommend you to hold GLAXO with a stop-loss of Rs 1,337 on closing basis.

LAKSHMI MACHINE WORKS LTD
                             
CMP: Rs 2514.00             
BSE Code500252

Can I buy LAXMIMACH as it has fallen tremendously?
- Dr Maheshkumar Doiphode

AVOID BUYING LAKSHMI MACHINE WORKS FOR NOW
Lakshmi Machine Works Ltd is currently trading at Rs 2,514. Its 52-week high/low stands at Rs 6,038/Rs 2,001 made on April 18, 2019 and March 25, 2020 respectively. The stock had given a breakdown of bump & run reversal pattern as on the weekend of September 21, 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 average, i.e. 20-week EMA, 50-week EMA, 100-week EMA and 200-week EMA. The daily chart shows it has been continuously trading below its 200-day EMA level since April 2019. The leading indicator, 14-period weekly RSI, is currently quoting at 33.63 level and it is not able to cross 60 mark since July 2018. The weekly MACD stays bearish as it is trading below its zero line and signal line. Hence, we recommend you to avoid buying Lakshmi Machine Works for now.

ARMAN FINANCIAL SERVICES LTD
                        
CMP:  Rs 331.00                   
BSE Code:531179

I have bought Arman Financial Services above Rs 385. Now, I would like to know your suggestions on this stock, looking at the current market.
- Ajay Singh

EXIT ARMAN FINANCIAL SERVICES AT CURRENT MARKET PRICE
Arman Financial Services Ltd is currently trading at Rs 331. Its 52-week high/low stand at Rs 1,119.95/Rs 302.05 made on February 26, 2020 and April 16, 2020 respectively. The stock had formed a reversal bearish engulfing candlestick pattern as on February 27, 2020 and thereafter; fell sharply up to its 52-week low. 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-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. The 14-period weekly RSI is in super bearish zone. The weekly MACD stays bearish as it is trading below its zero line and the histogram is suggesting that a downside momentum is picking up. On the directional index, the bearish strength is higher than the bullish strength as +DI is trading much below -DI. The other oscillators and indicators are also lying below 50 and are tilted southwards. Considering all the above factors, we recommend you to exit Arman Financial Services at current market price.