Technical Portfolio Guide
HINDUSTAN AERONAUTICS LTD
CMP:Rs 778.15
BSE Code: 541154
I am planning to buy shares of HAL for the short-term. Please share your thoughts on the stock and suggest an entry price.
- Shankar Sharan
AVOID BUYING HINDUSTAN AERONAUTICS FOR NOW
Hindustan Aeronautics Ltd is currently trading at Rs 778.15. Its 52-week high/low stands at Rs 1,423.55/Rs 448 made on August 14, 2020, and March 24, 2020, respectively. The stock has formed a reversal spinning top candlestick pattern as on August 14, 2020, and thereafter, marked the sequence of lower lows. 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. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the zone of 82 and at present, its reading is 47.33. The RSI is trading below its 9-week average and it is in a falling mode, which indicates a further downside momentum. The momentum indicator, weekly MACD line has crossed under the signal line, which resulted in the histogram turning negative. On the directional index, the bearish strength is higher than the bullish strength as +DI is much below the -DI. Considering all the above factors, we recommend not to buy Hindustan Aeronautics for now.
TATA COMMUNICATIONS LTD
CMP: Rs779.90
BSE Code:500483
I am holding Tata Communications at Rs 670 for the short-term. Should I hold or book profit?
- Arumugam Karthikeyan
BOOK PROFIT IN TATA COMMUNICATIONS AT THE CURRENT MARKET PRICE
Tata Communications Ltd is currently trading at Rs 779.90. Its 52-week high/low stands at Rs 937/Rs 205.7 made on September 15, 2020, and March 19, 2020, respectively. The stock has formed a reversal Doji candlestick pattern as on the weekend of March 27, 2020, and thereafter, marked the sequence of higher tops and higher bottoms. However, on the daily timeframe, the stock has recently given a neckline breakdown of Adam & Adam double top pattern, which suggest correction before another northward journey. Along with this neckline breakdown, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. 20-day EMA and 50-day EMA. The leading indicator, 14-period daily RSI is currently quoting at 36.10 and it is trading below its 9-day average. The daily MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend booking profit in Tata Communications at the current market price.
PUNJAB NATIONAL BANK
CMP: Rs28.05
BSE Code: 532461
I am holding PNB bought at Rs 35 in August and expected it to bounce but it fell more. What should I do?
- Nevilkumar Ishwarbhai Patel
EXIT IN PUNJAB NATIONAL BANK AT THE CURRENT MARKET PRICE
Punjab National Bank is currently trading at Rs 28.05. Its 52-week high/low stands at Rs 69.60/Rs 26.30 made on November 04, 2019, and May 20, 2020, respectively. After forming the low of Rs 26.30, the stock has witnessed a pullback rally. The pullback rally is halted in between 23.6 per cent and 38.2 per cent retracement level of its prior downward move (Rs 67-Rs 26.30). Recently, the stock has given an upward sloping trendline breakdown as on September 21, 2020, formed by connecting swing lows from June 2020, which suggests a further downward momentum. Currently, the stock is trading below its short and long-term moving averages. If we look at the daily chart, it can be seen trading continuously below its 200-day EMA level since July 2019. Talking about the indicators, the 14-period weekly RSI is a bearish territory and it is in a falling mode. The momentum indicator, weekly MACD line has crossed under the signal line, which resulted in the histogram turning negative. Considering all the above factors, we recommend exit in Punjab National Bank at the current market price.
ZEE ENTERTAINMENT ENTERPRISES LTD
CMP: Rs192.85
BSE Code:505537
Please suggest what should I do with ZEEL, which I bought at Rs 167 for the shortterm?
- Kaveri Annamalai
BOOK PROFIT IN ZEEL AT THE CURRENT MARKET PRICE
Zee Entertainment Enterprises Ltd is currently trading at Rs 192.85. Its 52-week high/low stands at Rs 362.50/Rs 114 made on November 22, 2019, and March 25, 2020, respectively. The stock has formed a bullish engulfing candlestick pattern as on the weekend of August 07, 2020, and thereafter, bounced sharply up to the level of Rs 228.90. In the previous week, the stock had formed a bearish squeeze alert like candlestick pattern and gave confirmation in the current week. Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. 20-day EMA and 50-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the zone of 60 and at present, its reading is 40.61. The RSI is trading below its 9-week average and it is in a falling mode, which indicates a further downside momentum. The daily stochastic oscillator is suggesting some bearish momentum as well since per cent K is below the per cent D. The daily MACD stays bearish as it is trading below its zero line. Hence, we recommend booking profit in Zee Entertainment Enterprises at the current market price.