Technical Portfolio Guide
CITY UNION BANK LTD
CMP : Rs 123.05
BSE Code : 532210
Can I buy shares of CUB at the current levels?
-Sudhakar Gupta
AVOID BUYING CITY UNION BANK FOR NOW
City Union Bank (CUB) Ltd is currently trading at Rs 123.05. Its 52-week high/low stands at Rs 249/Rs 110.10 made on January 16, 2020 and April 07, 2020, respectively. The stock has formed a reversal shooting star candlestick pattern as on January 16, 2020 and thereafter, marked the sequence of lower tops and lower bottoms. Considering the daily timeframe, the stock has recently given a breakdown of rising channel, which suggests a bearish momentum. Currently, the stock is trading below its long and short-term 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 40.30 and it is trading below its nine-day average. The weekly RSI is in a super bearish zone. The daily MACD stays bearish as it is trading below its zero line and signal line. Moreover, on the directional index, the bearish strength is higher than the bullish strength as +DI is much below -DI. Considering all the above factors, we recommend you to avoid buying City Union Bank for now.
BHARAT ELECTRONICS LTD
CMP : Rs 83.70
BSE Code : 500049
I am holding the stocks of BEL at an average price of Rs 65 for short-term. Should I continue to hold this scrip?
- Amit Jorvekar
HOLD BEL WITH A STOP-LOSS OF RS 75 ON CLOSING BASIS
Bharat Electronics Ltd (BEL) is currently trading at Rs 83.70. Its 52-week high/low stands at Rs 122.15/Rs 56.10 made on November 04, 2019 and March 24, 2020, respectively. The stock has formed a bullish pin bar candlestick pattern as on May 12, 2020 and thereafter, witnessed a pullback rally. Considering the daily timeframe, the stock has recently given a downward sloping trendline breakout along with strong volumes, which suggests further bullish momentum. Along with this trendline breakout, the stock has also managed to close above its 100-Day SMA level. The 14-period daily RSI is in a rising trajectory. The momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive. Moreover, the ADX is very strong at 29.89. The -DI is below +DI and ADX is above -DI. This shows a technical strength in the stock. Considering all the above factors, we recommend you to hold Bharat Electronics with a stop-loss of Rs 75 on closing basis.
ORACLE FINANCIAL SERVICES SOFTWARE LTD
CMP : Rs2,678
BSE Code : 532466
I am holding 80 shares of OFSS at an average price of Rs 2,500 for a short-term. What to do now? Hold or sell?
- Manjunath Bannur
BOOK PROFIT IN OFSS AT THE CURRENT MARKET PRICE
Oracle Financial Services Software (OFSS) Ltd is currently trading at Rs 2,678. Its 52-week high/low stands at Rs 3,421.90/Rs 1,532.50 made on July 31, 2019 and March 24, 2020, respectively. The stock has formed a reversal doji candlestick pattern as on March 23, 2020 and thereafter, marked the sequence of higher tops and higher bottoms. Recently, the stock has formed a reversal shooting star candlestick pattern as on June 17, 2020, which suggests correction before another northward journey. Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving average, i.e. eight-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the zone of 75 and at present, its reading is 54.80. The RSI is trading below its nine-day average and it is in a falling mode, which indicates further downside momentum. Moreover, there has been a negative divergence between the weekly stochastic and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend to book profit in Oracle Financial Services Software at the current market price.
ESCORTS LTD
CMP : Rs 1,030.50
BSE Code : 500495
I have bought the shares of Escorts at Rs 700 for the long-term. Should I hold or book profits?
- Preshit Giri
HOLD ESCORTS WITH A STOP-LOSS OF RS 895 ON CLOSING BASIS
Escorts Ltd is currently trading at Rs 1,030.50. Its 52-week high/low stands at Rs 1,047.65/Rs 423.30 made on June 24, 2020 and August 23, 2019, respectively. The stock has formed a reversal spinning bottom like candlestick pattern near 200-week EMA as on the weekend of March 20, 2020 and thereafter, bounced sharply up to its all-time high level. As the stock reaches new lifetime highs, the stock is trading above all the moving averages and other trend indicators. The stock is meeting the criteria of Mark Minervini’s trend template. The leading indicator, 14-period RSI, is in a rising trajectory in both the weekly and daily timeframe. The weekly MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting a pickup in upside momentum. Moreover, the trend strength is extremely high as ADX is above 50 and -DI is much below +DI and ADX. Considering all the above factors, we recommend you to hold Escorts with a stop-loss of Rs 895 on closing basis.