Technical Portfolio Guide
HINDUSTAN OIL EXPLORATION CO. LTD
CMP: Rs107.90
BSE Code:500186
What’s your view for Hindustan Oil Exploration? I’m looking to hold this stock for at least six months.
- Muthukumar Gomathi
BUY ABOVE THE LEVEL OF RS 114
The stock has closed above the high of September 2019. For the past two months, the volume recorded has been above the three-year average. On a weekly chart, the stock is making higher swings and is in a clear uptrend. It retraced the 61.8 per cent retracement level of a prior downtrend (August 2018-March 2020). The 20 period RSI is in a super bullish zone and above the previous swing highs. The ADX 26.34 is strong while the +DMI is much above the -DMI. The MACD line is above the signal line, and the histogram shows a bullish momentum. The stock is currently trading 21 per cent above the 50-DMA. Recently, institutional sponsorship has increased in the stock. Around 21 funds had invested and increased their fundholding by 10.53 per cent. Its return on equity is good at 21 per cent. The only concern is the deceleration trend in the earnings of the last four quarters. Technically, the stock is in a bullish formation. A sustained move above Rs 114 is positive for the stock, and it can test previous highs. Maintain stop-loss at Rs 97.
DOLLAR INDUSTRIES LTD.
CMP: Rs263
BSE Code: 541403
I’m holding the shares of Dollar Industries for the past four months and my average cost of acquisition is around Rs 220. Should I continue to hold this stock for more gains?
- Pratik Deshpande
HOLD STOCK WITH A TRAILING STOP-LOSS OF RS 245
This small-cap stock is on an uptrend since March 2020. It has closed above the high of June 2019. The stock has broken out of a 20-month cup. It is trading above all the short- and long-term moving averages. However, the concern is that the MACD histogram shows the decelerating momentum, and the RSI is in an overbought condition. These conditions may lead to some consolidation before taking a decisive move. Even the volume was also seen receding. The low institutional participation in the stock is another concern. In December quarter, its EPS stood at Rs 4.90 and registered a growth of 48 per cent. Its relative price strength is good at 75. The 50-DMA has been acting as strong support for the stock. The stock has retraced more than 38.2 per cent of the fall, which was seen from the beginning of 2018 to March 2020. It would be prudent to hold this stock with a trailing stop-loss of Rs 245.
ASIAN PAINTS LTD.
CMP: Rs2431.90
BSE Code:500820
I had bought 150 shares of Asian Paints at the level of Rs 2,630. Can I average this stock at the current levels?
- Dinesh kumar Maurya
MAINTAIN A STOP-LOSS OF RS 2,260
You’ve entered the stock near its lifetime high. It corrected 15 per cent from the top. The stock is making lower lows & lower highs since the second half of the month of January. Currently, it took support at a 38.2 per cent retracement level and is bouncing for the past one week. It is trading above the 20-DMA. The 50-EMA is at Rs 2,448 while 50-DMA is at Rs 2,531. These are the important resistance levels for the stock in the near term. Above these levels, the stock may end the current downtrend. With the last week’s move, the MACD line is above the signal line, and the histogram has turned positive. The RSI reached above the 50, and it broke out of an inverse head & shoulders pattern, which is a bullish sign. The declining -DMI and the rising +DMI is a positive sign but to get a bullish signal, the +DMI must go above the -DMI. Meanwhile, the ADX is currently at 21.94, which is a modest level. Keep a stop-loss at the recent low of Rs 2,260 for the existing position. You can consider averaging this stock above the level of Rs 2,450
EIH LTD.
CMP: Rs107.45
BSE Code:500840
I had recently bought the shares of EIH Hotels. What should be the target of this stock in the medium-term?
- Gaurav Dave
BE WITH A BULLISH BIAS AS LONG AS THE STOCK IS ABOVE RS 93
The stock witnessed a serious downfall of about 92 per cent in just 8 weeks from February 2020 to March 2020. The stock has retraced almost 61.8 per cent retracement of the entire downfall. At present, the stock is moving in an upward channel. The stock is trading above the 20 and 50-DMAs, and they are in an uptrend. Currently, the stock is facing resistance at the upper end of the channel and it is seen retreating from this resistance level. For the past three days, it is forming bearish candles. It may retrace towards the nearest mean level. As the stock is trading above Bollinger Bands on the daily chart, it has to come inside the bands and near the 20-DMA. All the indicators are positive. The ADX shows good strength. As long as it trades above Rs 93, be with a positive bias. In any case, if it closes above Rs 119, it may test the level of Rs 135 in the medium-term.