Technical Portfolio Guide
JUST DIAL LTD
CMP: Rs1038.20
BSE Code:535648
I’m holding 150 shares of Just Dial at an average price of Rs 950. What could be the target for this stock in the near term?
- Jeetinder Kumar
A CLOSE ABOVE RS 1,072 LIKELY TO BE POSITIVE FOR THE STOCK
The stock has broken out of a 13-week base and trading at a five-year high. Its relative price strength is strong enough at 81. It actually broke the 51-month Stage-1 base in March 2021. The stock retraced 50 per cent of the previous downtrend. Since September 2020, the stock is making higher lows and moving in a staircase manner. The stock is above all moving averages and meeting Mark Minervini’s trend template principles. The weekly MACD has given a fresh buy signal by moving above the signal line. The ADX (32.33) is showing the trend strength. The positive directional movement indicator i.e. +DMI is above the -DMI. For the last five weeks, the volume is above average and also, indicating institutional interest in the stock. In fact, 134 funds have invested in the stock. Technically, the stock looks attractive at the current levels. A weekly close above Rs 1,072 is likely to be further positive for the stock. The next target is placed at Rs 1,266.
BOMBAY DYEING & MFG.CO.LTD.
CMP: Rs94.75
BSE Code:500020
I’ve bought 500 shares of Bombay Dyeing at Rs 75; what should be the trailing stop-loss and medium-term target for the stock?
- Arockianathan Thomas
KEEP TRAILING STOP-LOSS AT RS 85
Technically, the stock is trading at a 91-week resistance line. The stock declined by 89 per cent from its 2018 highs. Since March 2020, the stock is making higher lows and reached resistance. The price action looks like a Stage-1 consolidation. Currently, the stock has broken out of a 13-week cup pattern with a higher and above-average volume. As the stock is trading at a 64-week high, all the moving averages are trending up. The MACD line is above the signal line. However, the histogram shows that the momentum is very flat. The ADX (27.45) shows a relatively strong trend. The RSI is above the prior swings and in a super bullish zone but fundamentally, there are concerns as the EPS declined by 449 per cent during March quarter. Currently, the stock has given about 25 per cent on your purchase price. Technically, the stock may test Rs 110. Besides, keep a trailing stop-loss at Rs 85
MASTEK LTD.
CMP: Rs2,167.40
BSE Code:523704
I’m planning to buy the stock of Mastek for medium to long-term. What should be the ideal range to buy this stock?
- Irfana Nizami
ACCUMULATE WITH A MEDIUM-TERM TARGET OF RS 2,720
Mastek is a global technology services company offering digital services and software for large public & private enterprises in the UK, US, Middle East, Asia-Pacific, and India. During FY21, the company registered a revenue growth of 60.7 per cent. EBITDA margins grew at 21.2 per cent. PAT is up by 14.4 per cent. The order book reached $154.6 million. During Q4FY21, the revenue went up by 9.1 per cent and PAT inched higher by 7.7 per cent. For the last three quarters, the company is regis-tering over 20 per cent growth in EBITDA margins. Technically, the stock is trading at a lifetime high and meeting a majority of CANSLIM characteristics. Its relative price strength is as high as 94 while the EPS strength is at 98, which is outperforming the broader market. Yes, you can accumulate the stock in every dip. The medium-term target is placed at Rs 2,720 and the 18-month target is at Rs 3,164.
SUN TV NETWORK LTD.
CMP: Rs531.85
BSE Code:532733
Please share medium-term outlook for Sun TV Network?
- Prakash Gupta
THE SHORT-TERM TARGET IS PLACED AT RS 690
The stock is currently consolidating for the last 15 weeks. It is forming a cup & handle pattern. The two-year long price structure also looks like a complex inverted head & shoulder pattern. The stock is trading above the short and long-term averages. During the current week, the above-average volume indicates smart money invested in the stock. As the stock is consolidating for a long period, its relative price strength is poor. During March 2020 quarter, the company posted 80 per cent growth in EPS and 6 per cent growth in sales. Its return on equity is fairly good at 22 per cent. If you are holding this stock, keep a stop-loss at the prior week’s low or a swing low. Meanwhile, the short-term target is placed at Rs 690.