Technical Portfolio Guide

SRF LTD

CMP:  Rs3,892.15
BSE Code:503806

Please suggest what should I do with SRF, which I bought at Rs 3,660 for the short-term?
-Tilok Chand

HOLD SRF WITH A STOP-LOSS OF RS 3,800 ON CLOSING BASIS
SRF Ltd is currently trading at Rs 3,892.15. Its 52-week high/low stands at Rs 4,258.90/Rs 2,492.20 made on February 20, 2020 and March 25, 2020, respectively. The stock has formed a reversal bullish pin bar candlestick pattern as on March 25, 2020 and thereafter, marked the sequence of higher tops and higher bottoms. Recently, the stock has given a consolidation breakout along with robust volume, indicating the continuation of a positive trend. With this consolidation breakout, the stock has also managed to close above the upper Bollinger band and started band walk, which is a very bullish sign. 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 14-period RSI on the daily and weekly timeframe is in bullish territory. The trend strength indicator, average directional index (ADX), is at 30.79, which indicates strength. Besides, +DI is much above–DI on the weekly as well as the daily timeframe. This structure is indicating a bullish strength in the stock. Hence, we recommend you to hold SRF with a stop-loss of Rs 3,800 on a closing basis.

DIVI’S LABORATORIES LTD

CMP: Rs2,178.75
BSE Code:532488

I am holding shares of Divi’s Lab, which I bought at Rs 2,380 in May. I expected it to bounce back but instead, it fell more. What should I do?
- Thirumalai Echambadi

EXIT IN DIVI’S LABORATORIES AT THE CURRENT MARKET PRICE
Divi’s Laboratories Ltd is currently trading at Rs 2,178.75. Its 52-week high/low stands at Rs 2,537.70/Rs 1,466.95 made on June 02, 2020 and August 14, 2019, respectively. The stock has formed a reversal dark cloud cover candlestick pattern as on June 02, 2020 and thereafter, witnessed a correction. Recently, the stock has given a neckline breakdown of head and shoulders pattern. Along with this pattern breakdown, the stock has also managed to close below its weekly pivot and below its short and medium-term moving averages, i.e. 20-day EMA, 50-day EMA and 100-day EMA. Interestingly, the price has made two higher highs in recent times but most of the indicators, including the RSI, have not reached near the prior highs. The CCI has also supported the same phenomenon, which indicates a limited upside. The daily 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 Divi’s Laboratories at the current market price.

TCNS CLOTHING CO LTD

CMP: Rs 357.60
BSE Code:541700

Can I buy TCNSBRANDS as it has fallen tremendously?
- Kotha Madhava Rao

AVOID BUYING TCNS CLOTHING CO FOR NOW
TCNS Clothing Co Ltd is currently trading at Rs 357.60. Its 52-week high/low stands at Rs 817.95/Rs 300.40 made on July 16, 2019 and March 24, 2020, respectively. The stock has given an upward sloping trendline breakdown as on the weekend of December 13, 2019 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-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. The leading indicator, 14-period weekly RSI, is currently quoting at 36.14 and it is in a super bearish zone. Moreover, on the directional index, the bearish strength is higher than the bullish strength as +DI is much below -DI. The stochastic oscillator is also suggesting some bearish momentum as per cent K is below the per cent D. Considering all the above factors, we recommend you to avoid buying TCNS Clothing for now.

BAYER CROPSCIENCE LTD

CMP: Rs5,793.50
BSE Code:541700

I have bought the shares of Bayer Crop at Rs 5,600 after the breakout. Should I hold or book profits?
- Ajay Tiwari

BOOK PROFIT IN BAYER CROPSCIENCE AT THE CURRENT MARKET PRICE
Bayer CropScience Ltd is currently trading at Rs 5,793.50. Its 52-week high/low stands at Rs 6,342/Rs 2,952 made on July 03, 2020 and August 02, 2019, respectively. The stock has formed a reversal spinning bottom candlestick pattern as on the weekend of March 27, 2020 and thereafter, it bounced sharply up to its all-time high level. Recently, the stock has formed a reversal dark cloud cover candlestick pattern on the daily time frame, which suggests correction before another northward rally. Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. eight-day EMA and 13-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the zone of 78-80 and at present, its reading is 54.06. The RSI is trading below its nine-day average and it is in a falling mode, which indicates a further downside momentum. Moreover, there has been a negative divergence between the daily RSI, daily stochastic and the stock price movement, which suggests a limited upside. Considering all the above factors, we recommend you to book profit in Bayer CropScience at the current market price.