Technical Portfolio Guide
AU SMALL FINANCE BANK LTD
CMP: Rs 730.50
BSE Code: 540611
I have bought the shares of AU Bank near its 52-week low. Please suggest what I should do now and revise stop-loss.
- Manoj Rathore
HOLD AU BANK WITH A STOP-LOSS OF RS 615 ON CLOSING BASIS
AU Small Finance Bank Ltd is currently trading at Rs 730.50. Its 52-week high/low stands at Rs 1,217.70/Rs 366.20 made on March 02, 2020, and May 27, 2020, respectively. After registering a high of Rs 1,218, the stock has witnessed nearly 70 per cent sharp correction. The stock has formed a reversal spinning bottom candlestick pattern as on the weekend of May 29, 2020, and thereafter, initiated its pullback rally. The pullback rally is halted near 50 per cent retracement level of its prior downward move and thereafter, witnessed sideways movement. However, on the daily timeframe, the stock has recently given a breakout of downward sloping trendline resistance, which suggests that the uptrend has been resumed. Further, the breakout has been confirmed by the above 50-day average volume. The stock is trading above its short and long-term moving averages. Talking about the indicators, the weekly RSI and stochastic has recently given a positive crossover, which supports the overall bullish price structure. Moreover, the MACD line has just crossed the signal line and the histogram became green. Considering all the above factors, we recommend to hold AU Small Finance Bank with a stop-loss of Rs 615 on a closing basis.
MANGALORE REFINERY & PETROCHEMICALS LTD
CMP : Rs 26.25
BSE Code : 500109
I have bought MRPL at an average price of Rs 35. Now, the stock is trading at Rs 27. Please suggest what to do.
- Bindu Tripathi
EXIT MRPL AT THE CURRENT MARKET PRICE
Mangalore Refinery & Petrochemicals Ltd (MRPL) is currently trading at Rs 26.25. Its 52-week high/low stands at Rs 56.60/Rs 21.25 made on November 01, 2019, and March 25, 2020, respectively. The stock has given an upward sloping trendline breakout as on February 02, 2018, and thereafter, marked the sequence of lower tops and lower bottoms. Currently, the stock is trading below its short and long-term moving averages on both the weekly and the daily timeframe. The weekly chart indicates that it has been continuously trading below its 200-week EMA level from June 2018. Among the momentum indicators, the 14-period weekly RSI is in bearish territory and it's in falling mode, which suggests a further downside momentum. The weekly RSI is not able to move above the 60 mark since November 2017. The weekly MACD stays bearish as it is trading below its zero line and signal line. The histogram is suggesting that the downside momentum is picking up. Considering all the above factors, we recommend to exit in MRPL at the current market price.
BOMBAY BURMAH TRADING CORP. LTD
CMP : Rs 1,287.70
BSE Code : 501425
I am holding 200 shares of BBTC at Rs 1,240 for the short-term. What should I do now?
- Sunder Paul
BOOK PROFIT IN BBTC AT THE CURRENT MARKET PRICE
Bombay Burmah Trading Corp. (BBTC) is currently trading at Rs 1,287.70. Its 52-weekhigh/low stands at Rs 1,566.80/Rs 538 made on August 10, 2020, and March 24, 2020, respectively. From the low of Rs 535,which was registered on March 24, 2020, the stock has witnessed over 190 per cent upward momentum. After registering a highof Rs 1,565 as on August 10, 2020, the stock has witnessed lower high and lower lows, which suggest a bearish momentum. Further, the stock is trading below its short-term moving averages i.e. 13-day EMA and 20-day EMA. In the recent pullback, which started from the low of Rs 1,300 to the high of Rs 1,482, the leading indicator, RSI has reversed from the 60 mark. As per the range shift rules, if RSI fails to cross the level of 60, it results in the range shift of RSI. The daily MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend to book profit in BBTC at the current market price.
PC JEWELLERS LTD
CMP : Rs 13.89
BSE Code : 534809
As the gold prices are trading near its all-time high levels, can I buy PC Jewellers?
- Bhaskar Sen
AVOID BUYING PC JEWELLERS FOR NOW
PC Jewellers Ltd is currently trading at Rs 13.89. Its 52-week high/low stands at Rs 36.80/ Rs 7.80 made on October 23, 2019, and March 25, 2020, respectively. After registering a high of Rs 600.65, the stock has witnessed a sharp fall. Currently, the stock is trading below its short and long-term moving averages, i.e. 20-week EMA, 50-week EMA, 100-week EMA and 200-week EMA. The daily chart indicates that it has been continuously trading below its 200-day EMA level since May 2019. The lower volumes and the 14-period weekly RSI, quoting at 40.65, depict a lack of momentum in the stock for now. The weekly RSI has not crossed the 60 mark since April 2019. The weekly MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend to avoid buying PC Jewellers for now.