Technical Portfolio Guide
PUNJAB NATIONAL BANK
CMP : Rs43.75
BSE Code : 532461
What’s your view on the stock of PNB for the medium-term?
- Chaganti Chenchi Reddy
A MOVE ABOVE 44-46 ZONE WOULD BE POSITIVE FOR THE STOCK
The stock of PNB, once again, is moving above the level of Rs 43. The stock is forming higher tops & higher bottoms on a weekly chart, and it is moving in an upward channel. The price structure shows that the stock is in the process of transitioning to stage-2. A decisive close above Rs 44-Rs 46 will confirm the breakout of one-year sideways action. For the past four weeks, its volumes are above the average. It is also trading above the 40 and 10-weekly moving averages. Within the last one year’s consolidation, the stock has formed three higher bases, which is a positive sign. The weekly MACD moved above the signal line while the histogram is showing bullish momentum. The RSI is above the prior swing high and is in a bullish zone. The ADX (24.83) shows decent trend strength. On the daily chart, it formed a 58-day cup. A move above the zone of Rs 44-Rs 46 will be quite positive for the stock. Accumulate the stock in this range for the medium-term target of Rs 68-Rs 70. Maintain a stop-loss at 50-DMA of Rs 3
WELSPUN INDIA LTD.
CMP : Rs94.10
BSE Code : 514162
I’m holding 1,000 shares of Welspun India. What could be the target for the stock in the long term?
- Vikash Mundhra
THE TARGET FOR THIS STOCK IS RS 104, FOLLOWED BY RS 120
The stock took support at 50-DMA on Tuesday and bounced thereafter. Since July 2020, the 50-DMA is working as crucial support. From November 2020 to February 2021, it oscillated around the 50-DMA. Currently, the stock is 11.03 per cent above the 50-DMA. On Wednesday, it moved above the 20-DMA. The stock has tested the prior breakout level and then, bounced sharply. Its price relative strength is fairly at 74. The RSI is bouncing from the zone of 46 and this zone worked as strong support for the past five months on the daily chart. The +DMI moved above the -DMI and ADX. The stock also moved above the anchored VWAP support. The Elder impulse system is also giving a buy signal. As we do not know your entry price, keep a stop-loss at 50-DMA on a closing basis. The short-term target is at the prior swing high of Rs 104. Above this level, it can test the lifetime high of Rs 120.
VENKY'S (INDIA) LTD.
CMP : Rs2,706.30
BSE Code : 523261
I had bought 30 shares of Venky’s India at an average price of Rs 1,970. What should be my stop-loss and target for the stock?
- Desh Deepak Chandra
BOOK PARTIAL PROFITS
The stock recorded a 71 per cent rise in just four weeks after breaking out of an inverted head and head & shoulders pattern. The stock retraced 50 per cent of its previous fall. Before the breakout, it traded in a sideways direction as well as in a very tight range. As the stock witnessed a phenomenal rise, it may enter into a counter-trend consolidation before the resumption of an upside move. Many of the indicators reached an extreme overbought condition too. The weekly RSI is at 83.06 while the stochastic oscillator is at 85.6. These extreme levels are giving caution for the long positions. As the stock is up by 34 per cent from your buy price, it is wise to book partial profits. Any correction towards the zone of Rs 2,275-Rs 2,455 is healthy and can give a new opportunity to re-enter.
TIME TECHNOPLAST LTD
CMP : Rs86.15
BSE Code : 532856
Please share your outlook for Time Technoplast. Is this a good time to buy this stock?
- Srinivasan S
EXCELLENT ENTER LEVEL AT RS 72
After a decline of 90 per cent from its 2018 top, the stock rose almost from the low of March 2020 and is currently moving in a haphazard manner. Its 10-week moving average is working as a support for the past six months. Currently, the stock is 4.57 per cent above its 20-DMA and 15.88 per cent above the 50-DMA but the volumes are declining. Its relative price strength (RS) is good at 80. However, there is a slight negative divergence on the RSI in an overbought condition. And the histogram shows that the momentum is waning. This means that the stock may enter into consolidation before resuming the uptrend and come out of the overbought condition. It is better to wait for some consolidation of the stock towards 50-DMA. A correction towards Rs 72 will give a good entry-level. Better be with a neutral bias for now and wait for an excellent entry-level.