Technical Portfolio Guide

ESCORTS LTD
CMP: Rs1,260.35
BSE Code:500495

I have bought the shares of Escorts at Rs 700 for the medium term. Should I hold or book profits?

- Md Mustafa

BOOK PROFIT IN ESCORTS AT THE CURRENT MARKET PRICE
Escorts Ltd is currently trading at Rs 1,260.35. Its 52-week high/low stands at Rs 1,452.85/Rs 527.10 made on December 04, 2020, and March 19, 2020, respectively. Recently, the stock has given a neckline break-down of Adam & Adam double top pattern on the daily timeframe and thereafter, fell sharply. Along with this pattern breakdown, the stock has also managed to close below its short-term moving averages, i.e. 20-day EMA and 50-day EMA levels. The leading indicator i.e. the 14-period weekly RSI has slipped below the 60 mark for the first time since May 2020. Currently, the weekly RSI is trading below its 9-week average and it is in a falling mode, which suggests bearish momen-tum. The weekly and the daily stochastic is suggesting a bearish momentum as the fast stochastic is trading below its slow stochastic line. The MACD stays bearish as it is trading below the zero line and signal line. Hence, we recommend you to book profit in Escorts Ltd at the current market price

IDBI BANK LTD
CMP: Rs31.90
BSE Code:500116

Shall I enter IDBI at the current market price for long-term investment?

- Sunil Kumar

AVOID BUYING IN IDBI BANK FOR NOW
IDBI Bank Ltd is currently trading at Rs 31.90. Its 52-week high/low stands at Rs 55.74Rs 17.50 made on July 07, 2020, and March 13, 2020, respectively. The stock has formed a dark cloud cover candlestick pattern as on the weekend of July 10, 2020, and thereafter, witnessed a correction. Also, on the larger timeframe, the stock is making a series of lower tops & lower bottoms since November 2010, which suggests that it is in a long-term downtrend. Further, the stock is trading below its short and long-term moving averages. Talking about the indicators, the 14-period weekly RSI is in a falling mode and has not been able to sustain the 60-mark since July 2020. The stochastic oscillator is also suggesting a bearish momentum as it has recently witnessed a bearish crossover. Moreover, the daily MACD histogram is suggesting a pickup in the downside momentum. 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 you to avoid buying in IDBI Bank for now.

LARSEN & TOUBRO INFOTECH LTD
CMP: Rs3,624.10
BSE Code:540005

I have bought the shares of LTI at Rs 1,800 and would like to know your suggestion on this stock looking at the current market.

- Ravindra reddy Kondapalli

HOLD LTI WITH A STOP-LOSS OF RS 3,150 ON A CLOSING BASIS
Larsen & Toubro Infotech Ltd is currently trading at Rs 3,624.10. Its 52-week high/low stands at Rs 3,698/Rs 1,207.60 made on December 23, 2020 and March 19, 2020, respectively. The stock has gained more than 200 per cent from its 52-week lows, and has given nearly 110 per cent returns from year-to-date. Currently, the stock is trading at its all-time high levels. Recently, the stock has given a downward sloping trendline breakout, which indicates a further upward momentum. 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. All the major indicators suggest a bullish momentum in the stock. The weekly RSI is trading above the 60-mark since June 2020. The MACD stays bullish as it is trading above/below the signal line. The weekly ADX is above 60, which suggests further strength in the trend. Hence, we recommend you to hold LTI with a stop-loss of Rs 3,150 on a closing basis.

GUJARAT STATE PETRONET LTD
CMP: Rs212.45
BSE Code:532702

I bought 200 shares of GSPL at Rs 230 for the short-term. What should I do now?

- Srimanta Baruah

EXIT GSPL AT THE CURRENT MARKET PRICE
Gujarat State Petronet Ltd is currently trading at Rs 212.45. Its 52-week high/low stands at Rs 263.45/Rs 146 made on January 27, 2020, and March 24, 2020, respectively. The stock has given a downward sloping trendline breakout as on November 23, 2020, and thereafter, witnessed almost 19 per cent upward momentum in just 17 trading sessions. However, after registering the high of Rs 238.70, the stock has witnessed a correction and formed a 'three black crows' pattern on the daily timeframe. Along with this bearish formation, the stock has also managed to close below its crucial short-term moving averages, i.e. 20-day EMA and 50-day EMA level. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the zone of 77 and, at present, its reading is 48.20. The RSI is trading below its 9-day average and it is in a falling mode, which indicates a further downside momentum. The daily MACD stays bearish as it is trading below its zero line and signal line. The MACD histogram is suggesting a pickup in the downside momentum. Hence, we recommend you to exit Gujarat State Petronet at the current market price.