Technical Portfolio Guide
DALMIA BHARAT SUGAR & INDUSTRIES LTD
CMP : Rs146.40
BSE Code : 500097
What should I do with the shares of Dalmia Sugar, which I bought at 110 level for the medium-term?
- Debaraj Biswal
HOLD DALMIASUG WITH A STOP-LOSS OF RS 138 ON A CLOSING BASIS
Dalmia Bharat Sugar & Industries Ltd is currently trading at Rs 146.40. Its 52-week high/low stands at Rs 158.95/Rs 40.30 made on December 09, 2020, and March 25, 2020, respectively. The stock has formed a dark cloud cover candlestick pattern as of August 28, 2020, and thereafter, witnessed a minor throwback. The throwback is halted near the 23.6 per cent retracement level of its prior upward move (Rs 39.75-Rs 153.80) and coincides with the 20-week EMA level. Currently, the stock is trading above its short and long-term moving averages. The stock is meeting the criteria of Mark Minervini’s trend template. The current stock price is above both the 150-day (30-weeks) and 200-day (40-weeks) moving average price lines. Moreover, the 30 and 40-weekly averages are trending up and at the same time, they are in the desired sequence. The weekly RSI is in bullish territory. Further, the daily MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting a pickup in the upside momentum. Hence, we recommend you to hold Dalmia Bharat Sugar & Industries with a stop-loss of Rs 138 level on a closing basis.
MAZDA LTD
CMP: Rs540.30
BSE Code:523792
I have bought the shares of Mazda after a breakout at Rs 580. What should I do now?
- Kaza Srinivasa
EXIT MAZDA AT THE CURRENT MARKET PRICE
Mazda Ltd is currently trading at Rs 540.30. Its 52-week high/low stands at Rs 639.85/Rs 222.25 made on November 18, 2020, and March 30, 2020, respectively. The stock has given a downward sloping trendline breakout as of June 01, 2020, and thereafter, marked the sequence of higher tops & higher bottoms. Recently, the stock has formed three black crows candlestick patterns on the weekly timeframe, 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. 13-day EMA and 20-day EMA levels. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the zone of 80-76 and at present, its reading is 62.50. 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 i.e. the weekly MACD line has crossed under the signal line, which resulted in the histogram turning negative. Considering all the above factors, we recommend you to exit Mazda Ltd at the current market price.
WEST COAST PAPER MILLS LTD
CMP : Rs176
BSE Code : 500444
Can I buy West Coast Paper for six months at the current price?
- Thomas George
AVOID BUYING WSTCSTPAPR FOR NOW
West Coast Paper Mills Ltd is currently trading at Rs 176. Its 52-week high/low stands atRs 257.45/Rs 99.90 made on January 17, 2020, and March 25, 2020, respectively. The stock has formed a Doji candlestick pattern as of November 09, 2018, and thereafter, marked the sequence of higher tops & higher bottoms. Currently, the stock is trading below its short and long-term moving averages, i.e. 50-week EMA, 100-week EMA & 200-week EMA levels. The leading indicator i.e. the 14-week RSI is oscillating in the range and has not sustained above the 60 mark since November 2018. The daily RSI is currently quoting at 58.30 level. The weekly MACD stays bearish as it is trading below its zero line and signal line. The daily stochastic is also suggesting a bearish momentum as the fast stochastic is trading below its slow stochastic line. Considering all the above factors, we recommend you to avoid buying West Coast Paper Mills for now.
NOCIL LTD
CMP : Rs149.80
BSE Code : 500730
I have bought the shares of Nocil at Rs 110 for the near term. Please suggest what I should do. Also, let me know the revised stop-loss.
- Vinayak Talpe
HOLD NOCIL WITH A STOP-LOSS OF RS 139 ON A CLOSING BASIS
Nocil Ltd is currently trading at Rs 149.80. Its 52-week high/low stands at Rs 156.30/Rs44.70 made on October 07, 2020, and March 24, 2020, respectively. The stock has formed a Doji candlestick pattern as on the weekend of March 27, 2020, and thereafter, witnessed 160 per cent upside in 28 weeks. After registering a high of Rs 156.40, the stock has witnessed consolidation for the next 9 weeks, which resulted in the formation of a triangle pattern. However, the stock has given a triangle pattern breakout along with robust volume, which suggests a further upside momentum. As the stock is near its 52-week high, it is trading above all the short and long-term moving averages. The stock is meeting the criteria of Mark Minervini’s trend template. The 14-period RSI on the weekly timeframe is in bullish territory. Furthermore, in the recent consolidation phase, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per the RSI range shift rules. The trend strength indicator i.e. the average directional index (ADX) is at 39.86 on the weekly chart, which indicates further strength. The +DI is much above the -DI. This structure is indicative of the bullish strength in the stock. Considering all the above factors, we recommend you to hold Nocil with a stop-loss of Rs 139 on a closing basis.