Technical Portfolio Guide
ADITYA BIRLA FASHION AND RETAIL LTD
CMP : Rs171.10
BSE Code : 535755
Is this a good price to accumulate Aditya Birla Fashion for the medium-term? If yes, please suggest appropriate stop-loss level as well.
- Jojo Philip
AVOID THIS STOCK FOR NOW
After retracing 78.6 per cent of the fall of February-May 2020, it failed to sustain a positive momentum on the upside. The stock closed below the 50-DMA, and it is trading below the short & medium-term averages. The upward channel breakout on March 1 also failed. The stock fell over 23 per cent from its recent high. There is a channel support line at Rs 160-162 zone. In any case, if this support holds, the stock may retrace towards Rs 190. All the indicators are showing bearish momentum. The MACD histogram shows an increased momentum on the downside while the RSI (32.80) is in a bearish zone. The ADX (25.04) indicates strength in bearishness. The Elder impulse system and Pring's KST have given a sell signal. In short, the stock is an intermediate downtrend and a downswing. Wait till it tests the support zone of Rs 160-Rs 162 or a move above Rs 183. It is important to assess the price behaviour at these levels. We suggest avoiding the stock for now and identifying a better stock in the market, which is in a clear uptrend.
FORTIS HEALTHCARE LTD.
CMP : Rs206.15
BSE Code : 532843
Please suggest to me what would be the appropriate target for Fortis Healthcare as I had bought 200 shares at Rs 174
- Manish Gambhir
HOLD WITH A TRAILING STOP-LOSS OF RS 191
The stock in a minor downswing. It is forming bearish candles on the daily as well as the weekly chart. It had formed a shooting star last week while currently, it is trading below that. It is forming consecutive bearish candles on a weekly chart and failed to get the confirmation. It closed below the 20-DMA on Tuesday. The MACD has given a sell signal. It has also closed below Kaufman's average, which indicates weakness. The Elder impulse system and Pring's KST have given a sell signal. The RSI closed below the prior swing lows. The -DMI is rising while +DMI is falling, which is an indication of cooling off the strength. Meanwhile, ADX is still strong at 44.35. The stock retraced 38.2 per cent of the prior swing. The recent minor swing low is at Rs 196. The stock may take support between Rs 196 and Rs 191 (50 per cent retracement level). In any case, if it fails to take support at Rs 191-Rs 196, it is advised to exit the stock to book profits.
TIMKEN INDIA LTD
CMP : Rs1335.70
BSE Code : 522113
What's short-term perspective on Timken India? Is this a good stock to buy now?
- Arun Setia
WAIT FOR CLEAR OPPORTUNITY
Currently, the stock is forming a cup pattern for the last 14 weeks. The stock is trading nearly 8 per cent away from the crucial pivot level. The stock is trading above the short, medium, and long-term averages. It has not formed any lower low in a clear uptrend. Its relative price strength is at 59, and it is improving. During the last week, the record level of volume indicated an accumulation. On a weekly chart, the stock never formed a lower low, even in the fall of March 2020. The Elder impulse system shows that the stock is in a neutral zone while Pring's KST shows bullishness. On the daily chart, the MACD histogram shows the decline is in bullish momentum. The 20 and 50-DMAs are placed at Rs 1,296 and Rs 1,303, respectively. This zone will act as a support while the minor swing low is at Rs 1,276. Let us wait for a bounce from the support zone or break above the cup pattern. The level of Rs 1,410-Rs 1,450 will act as a resistance. Above this resistance, the upside potential is about 17 per cent. Between these support and resistance zone, it’s better to wait for a clear opportunity.
3M INDIA LTD.
CMP : Rs25,644.85
BSE Code : 523395
I'm holding 25 shares of 3M India for almost one year, can I book profit now?
- Naman Prashar
KEEP 50-DMA AS TRAILING STOP LOSS
For the last one year, the stock traded mostly in the range of Rs 16,800-Rs 22,600. This Rs 6,000 range was broken out in the third week of February. After gaining 65 per cent in just 8 weeks, the stock is seen retracing back while it fell over 17 per cent from the recent high. The stock is trading below the 20-DMA, and it is begin-ning to trend down. It is trading 2.65 per cent above the 50-DMA. The anchored VWAP support is at Rs 24,346. On the daily chart, the MACD line is below the signal line, while the histogram shows that the pick-up is in bearish momentum. The ADX is declining as the -DMI is above the +DMI. The stock is just at 50 per cent retracement of the prior upswing. The 50-DMA and 61.8 retracement levels are at Rs 24,737. This may work as strong support. As long as it trades above this level, keep stop-loss at this level. If you are a risk-averse, book some partial profits and keep stop at 50-DMA for the remaining positions.