Technical Portfolio Guide

JSW ENERGY LTD.

CMP:84.40
BSE Code:533148

I had bought 500 shares of JSW Energy at a price of Rs 78.5 for the medium-term. Should I continue to hold this stock? If yes, what should be the trailing stop-loss and target in this stock?
- Viswanathan Ramachandran

SHORT-TERM TARGET FOR JSW ENERGY IS RS 95-98
Congratulations! Your entry price was precisely at a breakout level. During the week, the stock has sharply bounced over 25 per cent. The stock has also broken the long downward trendline resistance drawn from January 2015 highs. It also closed above the prior highs. Further, the stock recorded the highest volume in the current week after January 2018. Since the low of March 2020, the stock is moving in a perfect rhythm of higher highs & higher lows. As the stock is at a 33-month high, it is trading above all the long-term moving averages. Since May 2020, the 10-week average has acted as a crucial support. The 40 and 30-week averages are trending up. This structure shows that the stock is in a strong uptrend. The 20-period RSI is in the bullish zone and also, at a six-year high. The ADX, at above 48, shows a stronger trend strength. The MACD is above the two-year high, and the histogram shows that bullish momentum has picked up. Elder impulse system shows that the stocks came out of a two-week neutral zone to a bullish zone. The relative price strength is at a decent level of 70. In a nutshell, the stock is bullish. Hold it with your buy price as a trailing stop-loss. The short-term target is at Rs 95-Rs 98 zone while the medium to long-term stands at a previous lifetime high of Rs 126.25. 

 BHARTI AIRTEL LTD.

CMP: Rs539.45
BSE Code:532454

We had seen a decent correction in the stock price of Bharti Airtel. Is this a good time to accumulate this stock for the medium-term?
- Gaurang

AVOID BUYING BHARTI AIRTEL FOR NOW
The stock of Bharti Airtel corrected over 11 per cent in the last four weeks. It took sup-port at 200-DMA on March 1. The company acquired a 355.45 MHz spectrum, which can cover an additional 90 million customers. With this positive news, the stock has bounced back in the last two trading sessions. The stock is trading 6.62 per cent below the 20-DMA and also, at 4.62 per cent below the 50-DMA. Three days of price action is still within the price range of March 1. The 20-DMA is trending down. As a rule, to pick a stock from a longer-term perspective, it should trade at least above the 50-DMA. Currently, the stock's relative price strength is very poor at 28. During the previous week, the volume suggests that the distribution has taken place. The histogram on a weekly basis suggests a declining momentum. Elder impulse system shows that the stock is in a neutral zone. On the daily chart, it formed two lower highs and lows, which indicates a short-term downtrend. To buy this stock, it should move above the prior high of Rs 586 and above the 20-DMA (575.40) and 50-DMA (564.60). Wait for these levels to surpass.

JK PAPER LTD.

CMP:Rs163.10
BSE Code:532162

Paper stocks are in the limelight these days and I’m holding the shares of JK Paper from the levels of Rs 97. Is this a good time to book profit or should I continue holding this stock?
- Sidhartha

HOLD JK PAPER WITH A TRAILING STOP-LOSS OF RS 140
As you’ve mentioned, paper stocks are in the limelight in recent times. The scarcity of pulp and rising product prices are the key driving factors. At present, you are gaining nearly 70 per cent from your entry. The stock has retraced 78 per cent of the prior downtrend. With a sharp rise since October 2020 levels and a 12 per cent rise during the week, the stock has witnessed a very sharp upmove and it may enter into a brief consolidation. The stock is trading above all the long-term averages. And all the moving averages are trending up. Even on the monthly charts, the stock is looking pretty lucrative. On the monthly chart, Pring's KST and Elder impulse system shows a very bullish strength. The relative price strength (RS) is at a decent level of 74. Maintain a trailing stop-loss of Rs 140. 

CITY UNION BANK LTD.

CMP: Rs180.95
BSE Code:532210

I would like to know the short-term perspective of City Union Bank.
- Chanchal Kumar Goel

OUTLOOK IS POSITIVE FOR THE STOCK IN SHORT-TERM. EXPECT A TARGET OF RS 192.
Technically, the stock has broken out of the counter-trend consolidation pattern, after correcting 50 per cent of the prior rise. The stock has broken out of a downward channel on the back of massive volume on March 03. The stock closed at a prior high, and a close above Rs 184 will further confirm the resumption of an uptrend. The stock is trading above the short and long-term averages. The MACD line has just crossed the zero line. The RSI (64) is in a bullish zone. It is also above the prior swing high and is showing the resurgence of a trend. The ADX on the daily is at 18.56 while the weekly ADX is at 24.46, showing an improvement. The +DMI is above the -DMI. On a weekly chart, Elder impulse system has given a buy signal. As the sector is in the leading quadrant, the stock is also moving. Recently, the institutional holding has increased in the last quarter. This means that the smart money is flowing in. In the short-term, expect a target of Rs 192 and Rs 220 in the medium-term. Keep a stop-loss at Rs 165.