Technical Portfolio Guide
SPANDANA SPHOORTY FINANCIAL LTD
CMP : Rs 609.50
BSE Code : 542759
I had recently bought the shares of Spandana Sphoorty at Rs 560. What is the upside poten-tial in the stock from the current levels?
- Selvam N
HOLD STOCK WITH A TRAILING STOP-LOSS AT COST
With a 16 per cent rise on April 28 in the stock, your position has turned into a profit again. After over 37 per cent fall from the recent top, surprisingly, the stock witnessed a sharp bounce back without any proper base or bottom formation. Currently, the stock has reclaimed its 50-DMA on a closing basis. It has recorded massive volumes in the last one year, signifying that the market is sensing some remarkable development in the stock. The stock has reached and tested the prior resistance area at Rs 638. The 200-DMA is at Rs 640. The stock has also broken out of a falling wedge (bullish) pattern along with a surge in volumes thereby, confirming a breakout. thereby, confirming a breakout. The RSI has entered into a bullish zone from a bearish zone in just one day. The MACD has given a buy signal while the +DMI moved above the -DMI. The Elder impulse system has given a buy signal while Pring’s KST is about to give a buy signal. In any case, if the stock closes above the 200-DMA (Rs 640) and registers a follow-through day with a decent volume, you can continue the position with your buy price as a stop-loss. We believe that April 28 movement is because of some fundamental changes in the company. A close above Rs 640-Rs 654 zone can test the level of Rs 696 in the short-term. Above this, continue with a trailing stop-loss.
TVS MOTOR COMPANY LTD.
CMP:Rs633.50
BSE Code:532343
I’m holding 200 shares of TVS Motor Company. Should I book profit in the stock or continue holding this for higher targets?
- Seema Sharma
MAINTAIN A STOP-LOSS OF RS 594
The stock was up by 14 per cent on Wednesday with a massive volume. It has broken out of a counter-trend consolidation. After retracing about 30 per cent, it bounced sharply and reached the previous highs in one go! The sharp bounce back came from near about the 40-weekly average. The weekly 14-period average is above the prior swing and moved into a bullish zone. The daily and weekly MACD too are about to give buy signals. The daily ADX (34.89) shows strength in the trend. Its relative price strength improved to 72. Technically, a close above Rs 660 is a positive sign for the stock. As it bounced sharply and is trading above the Bollinger Band, it may consolidate for some time before it moves up again. The probable consolidation is Rs 610-Rs 660. As you are already holding, maintain a stop-loss at Rs 594. You can add the position only above Rs 660.
SAREGAMA INDIA LTD.
CMP:Rs1,845.00
BSE Code:532163
What is the future prospect of Saregama India? Is it a good stock to add at the current levels?
- Anand Pathak
BUY ONLY ABOVE RS 1,950
The stock of Saregama India is trading near a lifetime high. After the last week’s big bearish candle, currently, it is forming an inside bar on the weekly chart. It has given a whopping 972 per cent returns since the low of March 2020. It has met all technical targets. Before moving higher, it may consolidate as long as it trades below the previous week’s high of Rs 1,950. The probable consolidation range is Rs 1,645-Rs 1,742. The stock could enter into a consolidation only if it moves below this range. As it is trading near its lifetime high, none of the technical indicators are showing any nega-tives. However, RSI has a serious negative divergence on the weekly chart. If you want to buy this stock, do it once it’s above Rs 1,950. Meanwhile, the stock is meeting all the CANSLIM characteristics.
ORACLE FINANCIAL SERVICES SOFTWARE LTD.
CMP: Rs3,495.00
BSE Code:532466
Is Oracle financial services, a technical sound stock? My horizon is for the next one month.
- Bharat Bisht
BUY ONLY ABOVE RS 3,545
On April 28, the stock closed above the prior swing highs as well as above the BollingerBand. Technically, the stock looks strong on a daily chart and it’s moving in higher lows & higher highs since the last week of February. Before that, it fell by 17.25 per cent from the swing high in about 27 trading sessions. It has retraced 100 per cent of the fall in 43 sessions. As the stock moved above the Bollinger Band, it may consolidate here for two weeks before taking another decisive move. Its relative price strength (RS) is poor i.e. at 47 while the RSI shows a slight negative divergence. On a weekly chart, it looks very strong as the ADX (37.17) and it is above the +DMI and -DMI. The weekly MACD line is above the signal line as well as the zero line. The histogram shows a bullish momentum. As you wanted to trade in the stock for just one month, which is a short-term period, we would advise you to enter only above Rs 3545 with a stop-loss of prior bar low on a closing basis. In any case, if it sustains above Rs 3,545, for at least two sessions, the short-term target is at Rs 3,780. Above this, it may test the level of Rs 3,980.