Technical Portfolio Guide
ENTERTAINMENT NETWORK (INDIA) LTD
CMP:Rs128.50
BSE Code:532700
Entertainment Network (India) looks promising. Can I enter the scrip now?
- Yash Agrawal
AVOID BUYING ENTERTAINMENT NETWORK (INDIA) FOR NOW
Entertainment Network (India) Ltd is currently trading at Rs 128.50. Its 52-week high/low stands at Rs 402.50/Rs 101 made on August 06, 2019, and March 24, 2020, respectively. The stock has given a downward sloping trendline breakdown as on the weekend of December 1, 2017, and thereafter, marked the sequence of lower tops and lower bottoms. Currently, the stock is trading below its 20-week EMA (147.85), 50-week EMA (219.90), 100-week EMA (336.80), and 200-week EMA (453.10), which indicates a medium and long-term downtrend. The daily chart shows that it has been continuously trading below its 200-day EMA level from August 2018. The 14-period RSI on the weekly timeframe is in bearish territory. Furthermore, in the recent pullback rally, the RSI never breached its 40 mark, which indicates that the stock is in a super bearish range as per RSI range shift rules. On the directional index, the bearish strength is higher than the bullish strength as +DI is much below the -DI. Hence, we recommend you to avoid buying Entertainment Network (India) for now.
TATA MOTORS LTD
CMP: Rs 116.80
BSE Code:500570
Please suggest what I should do with Tata Motors, which I bought at Rs 93 for the short-term?
- Soma Sundaram
HOLD TATA MOTORS WITH A STOP-LOSS OF RS 106 ON CLOSING BASIS
Tata Motors Ltd is currently trading at Rs 116.80. Its 52-week high/low stands at Rs 201.80/Rs 63.60 made on January 15, 2020, and March 24, 2020, respectively. The stock has formed a reversal Doji candle as on the weekend of March 27, 2020, and thereafter, witnessed a pullback rally. Considering the daily timeframe, the stock has recently given a downward sloping trendline breakout. Along with this trendline breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI. Currently, the stock is trading above its short and medium-term moving averages. The relative strength index (RSI), which is a momentum indicator, is trading in a bullish territory on the daily timeframe. The MACD line just crossed the signal line, and the histogram became green. Moreover, the other volume-based indicators like OBV and Money Flow Index (MFI) are also very strong. Considering all the above factors, we recommend you to hold Tata Motors with a stop-loss of Rs 106 on a closing basis.
DR LAL PATHLABS LTD
CMP: Rs1,855.90
BSE Code: 539524
I have bought shares of Dr Lal PathLabs at Rs 1,690 after breakout for the short-term. Should I wait or exit with profits?
- Sunil Dutt
BOOK PROFIT IN DR LAL PATHLABS AT THE CURRENT MARKET PRICE
Dr Lal PathLabs Ltd is currently trading at Rs 1,855.90. Its 52-week high/low stands at Rs 2,029.85/Rs 1,060 made on July 21, 2020, and August 13, 2019, respectively. The stock has given a downward sloping trendline breakout as on July 07, 2020, and thereafter, witnessed nearly 21 per cent upside. Recently, the stock has formed a shooting star candlestick pattern as on July 24, 2020, and thereafter, witnessed a correction. Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. 8-day EMA and 13-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the zone of 78-75 and at present, its reading is 53.33. The RSI is trading below its 9-day average, which indicates a further downside momentum. The daily MACD stays bearish as it is trading below its zero line and signal line. The histogram is suggesting a pickup in the downside momentum. Hence, we recommend you to book profit in Dr Lal PathLabs at the current market price.
BOMBAY BURMAH TRADING CORP. LTD
CMP: Rs1,349
BSE Code:501425
I have bought the shares of BBTC at Rs 780 for the long-term. Should I hold or book profits?
- Santosh Chowdhary
HOLD BBTC WITH A STOP-LOSS OF RS 1,230 ON CLOSING BASIS
Bombay Burmah Trading Corp. Ltd is currently trading at Rs 1,349. Its 52-week high/low stands at Rs 1,380/Rs 538 made on September 23, 2019, and March 24, 2020, respectively. From the low of Rs 535, which was registered on March 24, 2020, the stock has maintained its rhythm of higher highs and higher lows. The stock is meeting Mark Minervini’s trend template. It is trading above 40, 30, and the 10-weekly averages and all of them are trending up including the 200, 150, and 50 daily moving averages. The leading indicator, 14-period weekly RSI, is currently quoting at 68.84 and it is in a rising trajectory. The weekly MACD stays bullish as it is trading above its zero line and signal line. The histogram is also suggesting a pickup in the upside momentum. The trend strength indicator weekly ADX is at a healthy level of 24.24. The directional parameter +DI is much above the -DI. Hence, we recommend you to hold BBTC with a stop-loss of Rs 1,230 as it is a confluence of upward sloping trendline support and a 20-day EMA level.