Technical Portfolio Guide
APL APOLLO TUBES LTD.
CMP : Rs 1643.05
BSE Code : 533758
I'm holding 150 shares of APL Apollo Tubes. Should I continue holding this stock? Please tell me the appropriate trailing stop-loss for this stock? - D G Shinde
HOLD WITH A TRAILING STOP-LOSS
The stock is a classic example of a 'buy high & sell higher' strategy. The stock was in an uptrend during 2015-18 and consolidated till March 2020. It never made a lower low on a long-term chart. After the breakout of a 33-month consolidation in September 2020, it has given a 210 per cent return from the breakout level. It is moving in a linear trend, trading at a new lifetime high. Since March 2020, it never closed below the previous month's low. It is moving up base-by-base. The stock is meeting William O' Neil's CANSLIM parameters. It is a value and growth investing stock. You did not mention your entry price. If you are a short-term investor, profit booking is advised when the stock closes below the previous week's low. If you are a long-term investor, the previous month's low is your trailing stop-loss. Keep it in your portfolio.
REC LTD.
CMP : Rs 145.55
BSE Code : 532955
What's the prospect for REC in the near term?
- Haresh Patel
WAIT FOR CONSOLIDATION BREAKOUT ABOVE RS 157
For the last ten years, the stock is trading between the range of Rs 190 and Rs 77. As it has been trading in a very tight range for years, it has not given any exceptional returns on a long-term basis. For a swing trader, it has given some opportunities. However, in the short-medium term, the stock is yet to make a higher high. It is facing selling pressure at higher levels for the last three weeks. It has a negative divergence in the weekly RSI. Currently, the stock is at 50-DMA support. A break below Rs 140-Rs 144 range is bearish for the stock. It is consolidating between the range of Rs 157 and Rs 122 for the past 16 weeks. If you are a long-term investor and bought it below Rs 122, then the stop-loss would be Rs 122. However, if you are planning to buy now, wait for a consolidation breakout above Rs 157.
GMR INFRASTRUCTURE LTD.
CMP : Rs 31.85
BSE Code : 532754
Is this a good time to enter GMR Infrastructure for a medium-term?
- Ramkanai Barik
KEEP STOP-LOSS AT RS 27
You need to have the patience to hold this stock. The stock is currently trading at an sixyear high. It may be looking attractive as the stock is making higher highs. Still, the fundamental and technical strength of the stock is not impressive. Its relative price strength (RS) is poor i.e. at 43. The indicators are in an overbought condition. The weekly ADX is still not attractive at 21.7. For the last three weeks, it is witnessing the highest volumes in almost three years. The stock is trading above the long and short-term averages, and they are trending up. If you are a new buyer at the current market price or an existing buyer, your stop-loss will be at Rs 27. As the stock increased by over 23 per cent from its prior pivot level, it consolidated for a period. Looking for a short-term may not be a wise decision.
COAL INDIA LTD.
CMP : Rs 145.65
BSE Code : 533278
Please share your view on Coal India as I'm holding this stock for a long time.
- Meenu Mittal
A BREAKOUT ABOVE RS 155 IS A BIG POSITIVE
The stock is in a Stage-1 consolidation for the past one year. At the current level, the stock is not looking attractive technically. It failed to have a breakout of 15-week cup & handle pattern. It is at 10-weekly average support now. The volumes are declining. The relative strength of the stock is poor i.e. at just 26. The momentum is also declining. The ADX is at 20. The stock formed a bearish engulfing candle three weeks ago. A close below Rs 146-Rs 143 zone is negative for the stock. If you are looking for a long-term i.e. more than one-year timeframe, you can accumulate this stock in the zone of Rs 120-Rs 130 as it is giving more than 10 per cent as a dividend yield. A sustained breakout above Rs 155 is a big positive for the stock, and it will enter a transition phase of Stage-2, where we can see a surge in demand for the stock. Do not look for short-term gains. As you are already holding the stock, keep accumulating in the dips.