Technical Portfolio Guide

GVK POWER & INFRASTRUCTURE LTD             

CMP: Rs 2.90          
BSE Code:532708   

I want to buy GVKPIL as it has fallen a lot. Is it the right time to enter for a long-term?
- Himadri Das

AVOID BUYING GVKPIL FOR NOW
GVK Power & Infrastructure Ltd is currently trading at Rs 2.90. Its 52-week high/low stands at Rs 7.90/Rs 2 made on April 24, 2019 and March 23, 2020 respectively. The stock had formed a reversal dark cloud cover candlestick pattern as on weekend of January 19, 2018 and thereafter, marked the sequence of lower tops and lower bottoms. Currently, the major trend of the stock is bearish as it is trading below its long and short-term moving averages, i.e. 20-week EMA, 50-week EMA, 100-week EMA and 200-week EMA. After looking at the daily chart, it has been continuously trading below its 200-day EMA level from April 2018. Among the momentum indicators, the 14-period weekly RSI, is in a bearish zone and has not been able to cross 60 mark since February 2018. The weekly 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 GVK Power & Infrastructure for now.

LAURUS LABS LTD
                                    
CMP: Rs 468.9                     
BSE Code:540222 

I am holding Laurus Labs bought at Rs 330 for the long-term. What to do now?
- Sanjeev Kumar Shaw

HOLD LAURUS LABS WITH A STOP-LOSS OF RS 390 ON CLOSING BASIS
Laurus Labs Ltd is currently trading at Rs 468.90. Its 52-week high/low stands at Rs 494/Rs 298 made on April 22, 2020 and August 07, 2019 respectively. The stock had formed a reversal doji candlestick pattern as on weekend of April 03, 2020 and thereafter, bounced sharply up to its 52-week high level. Recently, the stock has given a neckline breakout of Adam & Adam double bottom pattern. This breakout is confirmed by robust volumes, which suggests further upside momentum. With this neckline breakout, ADX that indicates the strength of the trend is turned upside and moved above +DI. Currently, the stock is trading above its weekly pivot and above its long and short-term moving averages. The leading indicator, 14-period weekly RSI, is in bullish zone and is in a rising trajectory. The weekly fast stochastic is also trading above its slow stochastic line. Considering all the above factors, the stock is likely to extend its northward journey in the coming weeks. Hence, we recommend you to hold Laurus Labs with a stop-loss of Rs 390 on closing basis as it is the confluence of 50-day EMA and recent swing low.

QUESS CORP LTD
                                                 
CMP: Rs 210.35                    
BSE Code:539978 

I bought Quess Corp at Rs 205. After that, my entry stock is trading in range. What should I do now?
- Gundala Venkataraman

EXIT QUESS CORP BELOW RS 200 ON CLOSING BASIS
Quess Corp Ltd is currently trading at Rs 210.35. Its 52-week high/low stands at Rs 722.95/ Rs 200 made on April 25, 2019 and April 22, 2020 respectively. The stock had formed a reversal doji candlestick pattern as on weekend of February 1, 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 pattern since the last 20 trading sessions. With a sideways price action for the past 20 days, the bollinger bands got narrowed. This is an indication that a bigger move is due. 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. The weekly RSI is in super bearish zone and the weekly MACD is also trading below its zero line and signal line. The weekly MACD histogram is suggesting that a downside momentum is picking up. In case the stock sustains and closes below the lower trendline of the bearish flag pattern, which is currently quoting at Rs 200, it may extend its southward journey. Hence, we recommend you to exit Quess Corp below Rs 200 on closing basis.

COLGATE-PALMOLIVE (INDIA) LTD
     
CMP: Rs 1480.00          
BSE Code: 500830

I am holding Colgate Palmolive at Rs 1,260. Should I hold or book profit?
- Primshad Pv

HOLD COLPAL WITH A STOP-LOSS OF RS 1,340 ON CLOSING BASIS
Colgate-Palmolive (India) Ltd is currently trading at Rs 1,480. Its 52-week high/low stands at Rs 1,641/Rs 1,065.20 made on November 8, 2019 and March 19, 2020 respectively. The stock had formed a reversal hammer like candlestick pattern as on weekend of March 20, 2020 and thereafter, bounced sharply. Currently, the stock is trading above all its long and short-term moving averages and is in sequence. 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 leading indicator, 14-period weekly RSI, is in bullish zone and is in a rising trajectory, which suggests a bullish bias. Interestingly, the stock has never been in an oversold condition in the past four years on a weekly chart. The momentum indicator weekly MACD line has crossed above the signal line, which resulted in the histogram turning positive. Considering all the above factors, we recommend you to hold ColgatePalmolive (India) with a stop-loss of Rs 1,340 on closing basis.