Technical Portfolio Guide
BAYER CROPSCIENCE LTD.
CMP: Rs5290.00
BSE Code:506285
What's the technical perspective on Bayer CropScience for the short to medium-term?
- Pradeep Mathan
BUY ONLY ABOVE RS 5,200
The stock currently formed a base at Rs 4,965, which is the previous zone of resistance. The stock is trading just below the 10-weekly average or 50-DMA. At the same time, it is trading 4.44 per cent below the long-term average of 200-DMA. It has formed a descending triangle pattern with lower tops and parallel bottom, which is a bearish sign. Before the formation of descending triangle pattern, the stock traded between Rs 3,200 and Rs 4,900 for six years. The weekly RSI took support at 45 and is seen rebounding in the current week. The MACD histogram shows a dull momentum with a bearish bias. Elder impulse system shows that the stock is in a neutral zone. The relative price strength is not good as it is at 29. In any case, the stock closes below the base of Rs 4,965. Avoid this stock if you are planning to buy it now. Buy only on a decisive weekly close above Rs 5,200 as above this stock could test its 200-DMA at Rs 5,537.
GILLETTE INDIA LTD.
CMP: Rs5694.75
BSE Code:507815
I had bought 25 shares of Gillette at a price of Rs 5,950. What's the medium-term outlook for the stock? Should I continue to hold or exit this stock? - MV PAUL
HOLD WITH A STOP-LOSS OF RS 5,465
The stock has formed a series of higher lows & higher tops since March 2020 lows. After retracing 50 per cent of the uptrend from March lows, the stock is trying to resume the uptrend for the past two days. The stock is trading above the 50 and 200-DMAs. It took support at 200-DMA and is seen bouncing. The MACD line is above the zero line and is also about to move above the signal line. The histogram is showing a declining bearish momentum. The ADX is 27, showing a reasonable trend strength as it is above +DMI and -DMI. In short, a weekly close above Rs 5,795 will confirm the resumption of an uptrend. Above Rs 5,795, the stock retests the previous high of Rs 6,288. Maintain a stop-loss at Rs 5,465 (200-DMA).
HDFC LIFE INSURANCE COMPANY LTD.
CMP : Rs693
BSE Code : 540777
Is this a good time to accumulate HDFC Life? If yes, provide stop-loss and target for short-term.
- Ramesh Shivram Kamble
ACCUMULATE IN SMALL QUANTITY WITH A STOP-LOSS OF RS 637
The stock is seen consolidating for the last 12 weeks. It has broken out of the inverted head & shoulders pattern in November. The current consolidation's base is at Rs 662 level while the inverted head & shoulders neckline is at Rs 643. So, the zone of Rs 643-Rs 662 is an important support for the stock. It is currently facing resistance at 50-DMA for the past two weeks. The 50-DMA had earlier acted as a strong support level; so now, it is seen turning its role from support to resistance. The volumes are below the average. None of the indicators are showing a strong bullish strength. The 200-DMA is also placed at Rs 637. So, as long as it trades above Rs 637-Rs 662, accumulate it in smaller amounts. In any case, if it closes above the consolidation zone, the stock will resume the uptrend. The medium-term target is Rs 828. Maintain a stop-loss of Rs 637. The stock can extend its fall if it slips below the support level (Rs 637).
CAPRI GLOBAL CAPITAL LTD.
CMP : Rs394
BSE Code : 531595
I'm holding 300 shares of Capri Global Capital at Rs 235. Is this a good time to book profit or should I stay invested in this stock?
- Jayashree Oak
STAY INVESTED WHILE MAINTAINING TRAILING STOP-LOSS OF RS 356ON WEEKLY CLOSING BASIS
Yes, you can stay invested in the stock. The stock is meeting all the CANSLIM parameters except RoE. It has a good rela-tive strength of 81 along with EPS strength of 92. The stock is performing better than 92 per cent of the listed stocks on earning front as well as 81 per cent of the stocks on the price front. The stock is trading above all the short and long-term averages. The weekly RSI is above 70, while the ADX is very strong at 52.69, showing strength in the trend. The ADX is above the +DMI and -DMI. The stock is oscillating around the 10-weekly average for the past seven weeks. The stock is currently consolidating between Rs 338-Rs 411. A weekly close above Rs 389 is positive for the stock. Elder impulse system shows a bullish bias. Maintain a trailing stop-loss at 50-DMA of Rs 356 on a weekly closing basis.