Technical Portfolio Guide

HINDUSTAN COPPER LTD.

CMP : Rs142.75
BSE Code : 513599

I’m holding 500 shares of Hindustan Copper. Is this a good time to book profit as I had bought the stock at the level of Rs 118?
- Sivakumar Ammamuthu

HOLD HINDUSTAN COPPER WITH A TRAILING STOP-LOSS OF RS 129
March 2020. After 50 per cent retracement, it formed a base at Rs 118-Rs 120 level but bounced thereafter. During the current bounce, the stock retraced 61.8 per cent. The stock has also ended the counter-trend consolidation and broke with an above-average volume. The stock is trading above the short and long-term averages. It is trading 35.99 per cent above the 50-DMA. It has moved above the anchored VWAP resistance on Wednesday. The contracting Bollinger Bands are indicating an explosive move on the cards. The MACD is on the verge of giving a buy signal. RSI is above 67 and indicating a resurgence in the stock price. The ADX at 24.91 has begun to move higher and is a trend-strength indication. The +DMI, which is above the –DMI, is a positive sign. The elder impulse system (EIS) has given a bullish structure. Continue to hold the stock with a trailing stop-loss of Rs 129. The immediate target is at the previous level of Rs 165. 

CSB BANK LTD

CMP : Rs265.75
BSE Code : 542867

What’s your technical perspective on CSB Bank?
- Meyyappan

MSTAY AWAY FROM THE STOCK IF YOU ARE A RISK-AVERSE TRADER.
The stock is trading still below its listing day level. It fell 69 per cent from the listing day high to March 2020 low. During the last year, it has regained by 160 per cent. However, the price structure lacks the rhythm in movements. There are several erratic moves on both sides. Recently, after forming a base at Rs 212—Rs 216 zone, it has moved sharply on the upside. Again, it corrected sharply over 62 per cent retracement. For the last four days, the stock is again witnessing the wild moves with higher volumes. On RBI policy day, it moved 5.81 per cent. Currently, the stock is trading above the 20 and 50-DMAs. Bollinger Bands indicate a wide range of volatility in the stock. With the last four days’ move, the MACD is about to give a buy signal. RSI (62.63) is in a bullish zone and indicates further scope for the price to move higher. The +DMI is above the -DMI. However, the concern is that the ADX has declined even after the last four days of big upmove. In short, the stock is witnessing high volatile moves; it’s better to stay away from the stock if you are a risk-averse trader. Focus on frontline banking stocks. If you can understand the volatility properly, then you can take a risk with a stop-loss of the recent low of Rs 230.

ALEMBIC PHARMACEUTICALS LTD.

CMP : Rs971.15
BSE Code : 533573

I have 30 shares of Alembic Pharmaceuticals at Rs 980. Should I hold or exit?
- Thakorbhai Patel

HOLD WITH A STOP-LOSS OF RS 948 ON A CLOSING BASIS
The stock is trading at close to your acquisition cost. It has formed a base at Rs 855-Rs 870 zones for the past 35 weeks. The stock is trading just above the 10, 30, and 40-weekly averages. The weekly MACD is about to move above the signal and zero lines. The volume is declining for the past few weeks. The directional indicators ADX, +DMI, and -DMI are below the 20 levels, indicating an explosive move. For the past four days, the stock is facing resistance at Rs 990 level and formed two consecutive indecisive candles. A move above this level is positive for the stock. As the stock broke out of a double bottom kind of pattern, be with a positive bias as long as it trades above Rs 948. A weekly close above Rs 990 will take the stock towards the previous high of Rs 1,129. As the stock is trading at your buy price, maintain a stop-loss at Rs 948 on a closing basis.

JSW STEEL LTD.

CMP : Rs 614.30
BSE Code : 500228

What is the long-term target for JSW Steel? I bought this stock for around Rs 330.
- Mahendranath

SKEEP A TRAILING STOP-LOSS OF PRIOR BAR LOW
The stock has witnessed a vertical rise in the last six trading sessions. It rose about 38 percent in just two weeks. Since March 2020 lows, it has given a 363.47 per cent return. The stock has achieved a 125 per cent extension of prior swings. As it is trading at a lifetime high and witnessed a vertical move, all the indicators show the rosy picture. The stock is also meeting all the CANSLIM characteristics, barring return on equity. There is a surge in the volumes in the past two weeks. However, the daily volume trend is declining for the last four days. The lower volume rise may lead to a profit booking at higher levels. The stock is in uncharted territory and no resistances are visible currently. However, a retracement towards Rs 530 is possible. As you’ve gained 70 per cent, keep trailing stop-loss of prior bar low as a counter-trend consolidation may result in a correction towards Rs 518 to Rs 488 zone.