Technical Portfolio Guide
GODREJ INDUSTRIES LTD.
CMP : Rs566
BSE Code : 500164
I’m holding 250 shares of Godrej Industries bought at an average price of Rs 494. Is it a good time to book profits or should I continue to hold it for the long term?
- Prabanch Raj
HOLD STOCK FOR TARGET OF RS 658 IN THE SHORT TERM
The stock has broken out of a 6-week flat base pattern during the week. It negated the last week’s shooting star bearish impli-cations. It also violated the sloping trend line resistance and is trading above the 61.8 per cent retracement level of the prior decline. The stock is above all short and long-term averages. It is trading 8.50 per cent above the 20-DMA and 9.2 per cent above the 50-DMA. Along with this, it is trading 29.8 per cent above the 50-weekly moving average and the moving averages are clearly trending upside. The 20-period weekly RSI is in a bullish zone. It is also trading above the weekly Ichimoku cloud. As the stock has broken out of a flat base and above the critical resistance zone, it may test the previous highs. In short, you have bought the stock at a previous breakout point. A weekly close above the Rs 555 is a bullish sign. It can test Rs 600 in the short-term and Rs 658 to Rs 699 in the medium to long-term. Maintain a stop-loss at your buy price.
KALYANI STEELS LTD
BSE Code : 500235
CMP : Rs396.00
I’ve been holding the stock of Kalyani Steels from almost Rs 294. What is the likely target for the stock in the medium-term?
- Kiran Venkata
HOLD THE STOCK FOR A TARGET OF RS 469
The stock rose almost 40 per cent from your buy price and 60 per cent from its breakout level. Currently, it is just 17.25 per cent away from its lifetime high. In the last four days, it is up by about 11 per cent with a massive volume. As the metals and steel sector stocks are outperforming, the stock also participated in the rally. As the stock is trading at a 40-month high, it is above all the moving averages, and all of them are trending up. Its relative price strength is as high as 81, showing a strong comparative strength. The 10-weekly average is working as a support. It is trading about 54 per cent above the 50-weekly average. The weekly MACD histogram is showing bullish momentum. The Elder impulse system and Pring’s KST are also showing a bullish price structure. The stock shows the greater buyers' demand as the institutional participation is very high. They increased the stake in the company by 13.91 per cent in the last quarter. In short, the sector and the stock are in a strong bull trend. Continue the position with a trailing stop-loss. The immediate target is at the previous high of Rs 469. Rs 288. The short-term target is at Rs 395 and above that, it can test Rs 480 in the long-term.
INDIAN OIL CORPORATION LTD
CMP : Rs104.80
BSE Code : 530965
I’ve bought the stock of Indian Oil Corporation at Rs 103. Kindly suggest what to do.
- Rohit Ravindra Hegde
HOLD WITH A STOP-LOSS OF RS 89
The stock just broke the prior minor swing high. After falling 69.26 per cent from its life-time high, it formed a base for the last year. Currently, the stock is in a transition to stage-2 after a strong stage-1 base. It took a support a 50-weekly average and broken out of a 9-week cup pattern with a huge volume. The cup depth is about 17.3 per cent. Its relative price strength is improving. The stock is trading 17 per cent above the 200-DMA and 10 per cent above the 50-DMA. It is also above the Ichimoku cloud. The Elder impulse system has given a buy signal. The MACD has given a fresh buy signal. The 20-period RSI is above 50 and in a bullish zone. It is also above the prior swing high. At the current market price, the dividend yield is at 8.40 per cent, which is much above the fixed deposit interest return. Even at your buy price, you can hold it for dividend returns. The stock is entering stage-2, hold with Rs 89 as stop-loss if you are risk-averse. A weekly close above Rs 109 will have a target of Rs 132 in the medium term.
ZEE ENTERTAINMENT ENTERPRISES LTD.
CMP : Rs191.35
BSE Code : 505537
What’s the outlook for ZEEL in the long term?
- Marshal Dias
AVOID THIS STOCK FOR NOW
Technically, Zee Entertainment Enterprises Limited (ZEEL) is one of the weaker stocks.For the last 19 weeks, the stock is continuously declining. The stock is trading below the 50-DMA, but it’s above the 20-DMA. The Bollinger bands have narrowed and are indicating a decisive move. It is forming bearish bars for the last four days and is not giving any conviction on the upside move, though it is above the 20-DMA. The daily RSI is still below 50. The volumes are relatively very low and are below the average. Its relative price strength is as poor as 22. The directional indicators are showing weakness while the weekly MACD is below the zero lines and the signal line. The stock is currently hovering around the Anchored VWAP support on a weekly chart. The Elder impulse is showing a neutral stance while the Pring’s KST is in a bearish zone. As you have not mentioned, whether you are holding the stock or not. Suggest better avoid this stock at the current juncture. Consider this stock to be on the watchlist only above Rs 210.