Technical Portfolio Guide

SNOWMAN LOGISTICS

CMP: Rs.50.40 BSE Code: 538635

I am holding Snowman Logistics bought at Rs 55 in February expecting it to bounce back, but it fell more. Now again it is near the level. What should I do?
- Sachin Kumar

HOLD SNOWMAN LOGISTICS WITH A STOP LOSS OF RS 50.90

Snowman is currently trading at Rs 50.40. Its 52-week high/low stand at Rs 71/Rs 43.90 made on January 12, 2018 and March 26, 2018, respectively, depicting a sudden plunge in the stock in 2018. Considering the daily time frame, the stock had given a descending triangle pattern breakout at Rs 59.50 during the first week of January. The stock surged up to Rs 71 but reversed to fall below its major multiple support zone of Rs 48-46 up to Rs 43.90 level. The stock consolidated thereafter near the support zone till April 23. Recently, it gave a sudden upward move up to the trendline level with volume spurt. Hence, we suggest you to hold for now with a stop loss of Rs 50.90

SOUTH INDIAN BANK

CMP: Rs.26 BSE Code: 532218

Can I enter South Indian Bank at the current levels?
- Sujit Prabhakar

BUY SOUTH INDIAN BANK ABOVE RS 26.45

South Indian Bank is currently trading at Rs 26.00. Its 52-week high/low stand at Rs 34.75/Rs 22.20 made on January 9, 2018 and March 26, 2018, respectively, showing a sudden downfall in 2018. The stock had given a major resistance breakout at Rs 33.30-33.45 and surged up to Rs 34.75. However, it turned out to be a whipsaw and the stock fell up to Rs 22.20 level. It bounced back up to its first major resistance at Rs 25.85, followed by a breakout and a pullback. With this, the stock has formed a kind of inverse head and shoulders pattern on the daily time frame. The volumes are low but the 14-period RSI is quoting above 55. If you want to, you can enter the stock at Rs 26.45 level for gain of Rs 3-5.

MINDTREE

CMP: Rs.1068.15 BSE Code: 532819

I am holding Mindtree at Rs 960 level. It is at all-time high. Should I exit now or wait?
- Vishal Meghpara

HOLD MINDTREE WITH A STOP LOSS OF RS 966

Mindtree is currently trading at Rs 1068.15. Its 52-week high/low stand at Rs 1040/438.30 made on April 25, 2018 and August 11, 2017 respectively, showing an uptrend. The stock is at all-time high levels. It gave a rounding pattern breakout at Rs 873 on April 19 and is surging up. The stock took a breather in-between, but it has bounced back again on April 25 to hit record high. Th volumes are high and the 14-period RSI, though in the overbought zone, does not suggest a reversal for now. This is the fourth consecutive weekly uptick for the stock. We may see some more upside. Hence, we suggest you to hold with a stop loss of Rs 966.

DEEP INDUSTRIES

CMP: Rs.158.40 BSE Code: 532760

I have bought shares of Deep Industries at around Rs 178. What should be my next step?
- Manoj Pingalsur

EXIT DEEP INDUSTRIES BELOW RS 154.50

Deep Industries is currently trading at Rs 158.40. Its 52-week high/low stand at Rs 339.70/Rs 144 made on May 2, 2017 and March 28, 2018 respectively, showing a downtrend. In broader terms, the stock broke its resistance-turned-multiple supports at Rs 205-200 levels on February 2 and fell since then up to Rs 144 level. The stock bounced back and hit above its two major resistances at Rs 172 and Rs 175. However, after consolidation, the stock has corrected below 61.8% retracement of the prior bounce. The volumes are justifiable, but the 14-period RSI is quoting below 50 at 46 which shows lack of momentum. We suggest you to exit.

HCC

CMP: Rs.22.90 BSE Code: 500185

Can I buy HCC at the moment?
- Rajan Sabharwal

AVOID BUYING HCC FOR NOW

HCC is currently trading at Rs 22.90. Its 52-week high/low stand at Rs 48/Rs 21.80 made on April 25, 2017 and March 23, 2018, respectively. On the broader front, the stock has been making lower tops and somewhat constant bottoms since the fall in January 2008. The levels of Rs 15-16 are its crucial support levels. Considering the weekly time frame, the stock had attempted a bounce back, but made a double top at Rs 48-49 on July 2014 and April 2017, from where it fell again to Rs 22 level. Considering the daily time frame, the recent data shows that the stock had attempted a bounce from Rs 22 up to 23.6% retracement of the recent fall and is consolidating there. The volumes are poor and the 14-period RSI is flat at 40 with a negative crossover. We suggest you to avoid buying now.

BALLARPUR INDUSTRIES

CMP: Rs.13.24 BSE Code: 500102

Can I buy Ballapur Industries shares for averaging at the current levels?
- Subramanian Jeyaprakash

AVOID ENTERING BALLARPUR INDUSTRIES FOR NOW

Ballarpur Industries is currently trading at Rs 13.24. Its 52-week high/low stand at Rs 22.70/ Rs 11.30 made on May 15, 2017 and October 5, 2017 respectively. Considering the weekly time frame, the stock is trading in a kind of horizontal channel pattern with Rs 22 as the upper band and Rs 10-11 as the lower. In January 2018, the stock resisted at Rs 20 level and retreated up to Rs 12 during March 2018. Now, the stock is trading in a zig-zag movement. The volumes are low and the 14-period RSI is also lying below 50, showing lack of momentum. We suggest you to avoid entering the stock because if it hits below Rs 13, it can fall up to Rs 12.60-12 or to even lower levels.