Technical Portfolio Guide

ULTRATECH CEMENT LTD
CMP: Rs5,284.30
BSE Code:532538

Can I hold or book profit in UltraTech Cement? I have bought shares at Rs 3,700 for the medium term.

- Ednatej Pusuluri

HOLD ULTRACEMCO WITH A STOP-LOSS OF RS 4,860 ON A CLOSING BASIS
UltraTech Cement Ltd is currently trading at Rs 5,284.30. Its 52-week high/low stands at Rs 5,397.95/Rs 2,913.15 made on December 30, 2020 and March 25, 2020, respectively. From the low of Rs 2,910, which was registered on March 25, 2020, the stock has maintained its rhythm of higher highs & higher lows. The stock gained more than 81 per cent from its 52-week low and has given over 30 per cent returns from year-to-date. 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. Recently, the stock has given a breakout of the upper trendline of the downward sloping chan-nel. Along with this channel breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI. Talking about the indicators, the RSI is in the bullish territory on both the weekly and the daily timeframe. The weekly MACD stays bullish as it is trading above its zero line and signal line. Hence, we recommend you to hold UltraTech Cement with a stop-loss of Rs 4,860 on a closing basis. 

CEAT LTD
CMP: Rs1,079.70
BSE Code:500878

I bought the shares of Ceat Ltd at Rs 1,200 for the short term but did not sustain at higher levels and witnessed a fall. What should I do now?

- Karthik Kumar

EXIT IN CEAT LTD AT THE CURRENT MARKET PRICE
Ceat Ltd is currently trading at Rs 1,079.70. Its 52-week high/low stands at Rs 1,249/Rs 601.50 made on October 27, 2020, and March 24, 2020, respectively. After registering a low of Rs 600 as on the weekend of March 27, 2020, the stock has marked a gradual higher top and a higher bottom. However, as on the weekend of December 04, 2020, the stock has formed a Doji candlestick pattern and thereafter, witnessed a correction. Along with this bearish formation, the stock has also slipped below its crucial short-term moving averages, i.e. 20-day EMA and 50-day EMA level. Among the momentum indicators, the 14-period weekly RSI has cooled-off after touching the zone of 68-69 and at present, its reading is 56.69. The RSI is trading below its 9-week 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 histogram is suggesting a pickup in the downside momentum. Hence, we recommend you to exit Ceat Ltd at the current market price. 

PETRONET LNG LTD
CMP: Rs247.60
BSE Code:532522

Can I buy Petronet LNG Ltd at the current levels for a short-term?

- Omprakash Singh

AVOID BUYING PETRONET FOR NOW
Petronet LNG Ltd is currently trading at Rs 247.60. Its 52-week high/low stands at Rs 280 Rs 170.75 made on January 15, 2020, and March 24, 2020, respectively. The stock has formed a hammer candlestick pattern as on the weekend of October 16, 2020 and thereafter, witnessed almost 22 per cent upward momentum in just 8 weeks. However, the stock has resisted near the downward sloping trendline resistance and witnessed a correction. Also, the stock has formed a spinning top candlestick pattern near the trendline resistance on the weekly chart. Currently, the stock is trading below its crucial short-term moving averages, i.e. 20-day EMA and 50-day EMA level. Talking about the indicators, the leading indicator i.e. the 14-period weekly RSI has reversed exactly from the 60 mark, which indicates a bearish range shift in the stock as per the RSI range shift rules. Further, the RSI is trading below its 9-week average and it is in a falling mode. The stochastic oscillator is also suggesting a bearish momentum as the fast stochastic is trading below its slow stochastic line on both the weekly as well as the daily timeframe. Considering all the above factors, we recommend you to avoid buying Petronet LNG for now.

HOUSING DEVELOPMENT FINANCE CORP.
CMP: Rs2,558.60
BSE Code:500010

Should I book profit in HDFC, which I have bought at Rs 1,900?

- Praveen Chandran Pranavam

HOLD HDFC WITH A STOP-LOSS OF RS 2,360 ON A CLOSING BASIS
Housing Development Finance Corp. Ltd is currently trading at Rs 2,558.60. Its 52-week high/low stands at Rs 2,575/Rs 1,473.10 made on December 31, 2020 and March 24, 2020, respectively. The stock has formed a spinning top candlestick pattern as of September 24, 2020, and thereafter, marked the sequence of higher tops & higher bottoms. The stock has gained over 57 per cent from the low of Rs 1,623, which was registered on September 24, 2020. Currently, the stock is meeting Daryl Guppy’s multiple moving averages set up rules as it is trading above both the short and long-term moving averages. The relative strength index (RSI), which is a momentum indicator, is trading in a bullish territory in all the timeframes. Also, if we look at the higher timeframe i.e. of the weekly timeframe, the RSI has never dropped below the 40 levels since May 2020. The ADX is very strong at 43.42. The -DI is much below the +DI and ADX is above the -DI & +DI. This shows a technical strength in the stock. Hence, we recommend you to hold HDFC with a stop-loss of Rs 2,360 on a closing basis.