Technical Portfolio Guide

SRF LTD 

CMP : Rs 5,373.20
BSE Code : 503806

I am holding the stocks of SRF at an average price of Rs 4,500 for the short-term. Should I continue holding this scrip or book profit?
- Prasad

BOOK PROFIT IN SRF AT THE CURRENT MARKET PRICE
SRF Ltd is currently trading at Rs 5,373.20. Its 52-week high/low stands at Rs 6,075/Rs 2,492.20 made on January 15, 2021, and March 25, 2020, respectively. The stock formed a spinning top candlestick pattern as on the weekend of March 27, 2020, and thereafter, marked the sequence of higher tops & higher bottoms. However, the stock has recently formed a shooting star candlestick pattern on the weekly chart, which suggests a correction before another northward rally. Along with this bearish formation, the stock has also managed to close below its short-term 20-day EMA and 50-day EMA level. Further, on the daily chart, the stock has given an upward sloping trendline breakout, which suggests bearish momentum. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the zone of 80-81 and at present, its reading is 39.08. The RSI is trading below its 9-week average and it's also, 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 booking profit in SRF at the current market price.

EVEREST INDUSTRIES LTD

CMP : Rs 282.05
BSE Code : 508906

Shall I enter Everest Industries at the CMP for a short-term investment?
- Mandar Khaladkar

AVOID BUYING EVEREST INDUSTRIES FOR NOW
Everest Industries Ltd is currently trading at Rs 282.05. Its 52-week high/low stands at Rs 349.05/Rs 120 made on January 06, 2021, and March 13, 2020, respectively. Considering the daily timeframe, the stock has formed a bearish pin bar candlestick pattern as of January 06, 2021, and thereafter, witnessed a correction. During this correction, the stock has slipped below the upward sloping trendline support, which is a bearish sign. Further, the stock is trading below its weekly pivot and short-term moving averages, i.e. the 20-day EMA and the 50-day EMA level. These moving averages are in a falling mode. Talking about the indicators, the leading indicator i.e. the RSI is in a bearish zone on the daily chart as well as it is in a falling mode. On the weekly chart, the RSI and the stochastic have recently given a bearish crossover. For the last ten trading sessions, the MACD line is moving below the signal line. Apart from this, the histogram is suggesting a pickup in the downside momentum. Moreover, the directional indicators have seen a bearish crossover as –DI has crossed over +DI. Considering all the above factors, we recommend you avoid buying Everest Industries for now.

GRASIM INDUSTRIES LTD 

CMP : Rs 1066.15
BSE Code : 500300

I am holding Grasim bought at Rs 850? Should I hold or book profit?
- Elango Kpe

HOLD GRASIM WITH A STOP-LOSS OF RS 990 ON A CLOSING BASIS
Grasim Industries Ltd is currently trading at Rs 1,066.15. Its 52-week high/low stands at Rs 1,122.65/Rs 380 made on January 25, 2021, and March 25, 2020, respectively. From the low of Rs 385.05, which was registered on March 25, 2020, the stock has maintained its rhythm of higher highs & higher lows. On the daily chart, the stock has recently given a small consolidation breakout along with robust volume. Daryl Guppy’s multiple moving averages is suggesting a bullish strength in the stock. The stock is trading above all the 12 short and long-term moving averages. The averages are all trending up and they are in the desired sequence. Further, the stock is meeting Mark Minervini’s trend template rules. These two set-ups are giving a clear uptrend picture in the stock. As the stock is trading near its all-time highs, all the trend indicators are hinting the uptrend to continue. The average directional index (ADX), which shows the strength of the trend, is as high as 58.66 on a daily chart and 55.77 on a weekly chart. Generally, levels above 25 are considered as a strong trend. In both the timeframes, the stock is meeting the criteria. Hence, we recommend you hold Grasim Industries with a stop-loss of Rs 990 on a closing basis.

BIOCON LTD 

CMP : Rs 380
BSE Code: 532523

I bought Biocon at an average price of Rs 480 but now, the stock is trading at Rs 380. Please suggest what to do.
- Dharmesh Pandya

EXIT IN BIOCON AT THE CURRENT MARKET PRICE
Biocon Ltd is currently trading at Rs 380. Its 52-week high/low stands at Rs 487.70/Rs 235.80 made on December 23, 2020, and March 19, 2020, respectively. After registering an all-time high, the stock has witnessed a correction. Recently, it has given a breakdown of the rising channel on a weekly chart, which suggests a further bearish momentum. Currently, the stock is trading below its short and long-term moving averages, i.e. the 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA level. On the weekly chart, the leading indicator i.e. the RSI has given an upward sloping trendline breakdown, which is a bearish sign. The weekly RSI is currently trading below its 9-week average and it's in a falling mode. The momentum indicator i.e. the MACD line has crossed under the signal line, which resulted in the histogram turning negative on a weekly chart. Hence, we recommend you exit in Biocon Ltd at the current market price.