Technical Portfolio Guide
PRATAAP SNACKS LTD
CMP : Rs662.35
BSE Code : 540724
I recently bought the shares of Prataap Snacks at an average price of Rs 633. The stock is up from my buying level but I’m looking to add more shares of this stock to my portfolio. Is this a good time to add this stock?
- Nagesh More
WAIT FOR STAGE-1 CONSOLIDATION BREAKOUT TO ADD
Currently, the stock is in a consolidation. It declined over 70 per cent post-listing gains. For the last 58 weeks, the stock is in Stage-1 consolidation. It is 13 per cent away from its previous pivot. The stock is also above the short and long-term moving averages, and they are trending up. As the long consolidation is in place, its relative price strength (RS) is poor i.e. at just 21. The ADX (19.16) i.e. the trend strength indicator, also needs to improve on the weekly chart. The MACD line is on the zero lines, while the histogram is showing an increase in the bullish momentum. The RSI is in a bullish zone. The Elder impulse system shows the bullish price structure. The stock is trading modestly higher above your buy price. You can keep a stop-loss at your existing position. You can add the position if the stock breakout out of the Stage-1 consolidation above Rs.725-760 zone.
SPENCERS RETAIL LTD
CMP : Rs79.60
BSE Code : 542337
I’m holding 750 shares of Spencer’s Retail at an average price of Rs 89. What’s the prospect of this stock?
- Manjeet Sahu
KEEP STOP-LOSS AT RS 78
The stock got listed at Rs 222 in January 2019. It never touched its listing day price. For the last 99 weeks, the stock is trading between the range of Rs 53 and Rs 93. It failed to close above Rs 93 even after several attempts. As a result, its relative price strength is very poor i.e. at 16. And the fundamentals are not attractive as its return on equity is minus 37. Technically, the stock is trading above the short and long-term moving averages. It just moved above the anchored VWAP resistance. MACD line is about to move above the signal line. The price is above Hull moving and it has just started trend-ing up. William's A&D indicator shows that the stock is still in the distribution phase. The stock is trading about 10 per cent below your purchase price. You can keep a stop-loss at Rs 78 or exit the stock with a loss. The stock can test the level of Rs 106 only if it’s above Rs 92.
IFCI LTD
CMP : Rs15.25
BSE Code : 500106
I’m planning to buy the shares of IFCI for medium-term. What does the technical setup suggest for the medium-term?
- Abhishek Bubna
BE WITH A POSITIVE BIAS
The stock has broken the 14-week cup & handle pattern this week, that too, with an above-average volume. Its relative price strength is fairly at 73. The stock is trading above the short and long-term moving averages while all the averages are trending upside. The stock moved above the weekly anchored VWAP. The Elder impulse system is showing a bullish setup. In fact, the stock is moving higher after breaking out base-by-base last year. The previous two consolidations have given above 30 per cent returns. Currently, the stock is trading above the pivot of Rs 14.40. You need to have patience to get returns in this stock. As long as it sustains above Rs 14, be with a positive bias. It can test the level of Rs 22.
PNB HOUSING FINANCE LTD
CMP : Rs666.65
BSE Code : 540173
Is PNB Housing good for investment purpose at the current levels?
- Gajanan Shesherao Padalwar
AVOID THIS NEWS-DRIVEN STOCK
This news-driven stock moved up by 100 per cent four weeks ago. Currently, the stock is retracing back. It is trading near a three-week low. It retraced over 45 per cent of its previous uptrend and declined by 28 per cent from its recent high. Interestingly, the recent top of Rs 925 is exactly 50 per cent retracement of the previous major downtrend, which was witnessed from 2018-2020. The general rule of technical analysis is that any sharp upmove will be followed by a counter-trend consolidation. These consolidations will be limited to less than 50 per cent of the prior uptrend. The 50 per cent retracement is at Rs 637. The decline should take support at around this level. Let us wait for a base to form and a breakout will give you a good entry. Though it is trading just less than 6 per cent to 50 per cent retracement, I suggest not taking a position at the current levels.