Technical Portfolio Guide
ONMOBILE GLOBAL LTD.
CMP: Rs142.00
BSE Code : 532944
What's your view on OnMobile Global? I'm planning to buy this stock for the medium-term?
- Kanhirat Saneej
BUY WITH A STOP-LOSS OF RS 119
The stock is trading at a 52-week high. It has broken out of a 19-week ascending triangle with above-average volume. Its relative price strength (RS) is as high as 91, which means that it is outperforming 91 per cent of the listed stocks. Currently, the stock is trading above all the short and long-term averages while all are trending up. It is meeting Mark Minervini's trend template and volatility contraction pattern (VCP) breakout rules. The weekly MACD has given a fresh buy signal in the stock. The RSI is at the prior swing high and is in a bullish zone. The ADX (52.61) shows significant trend strength. The +DMI is much above the -DMI. The weekly Elder impulse system is showing bullish signs. Pring's KST has given a fresh buy signal on the daily chart. It is also trading above the anchored VWAP. The ascending triangle breakout target is placed at Rs 178. Maintain a stop-loss at Rs 119-Rs 126 for the medium term.
SHREE CEMENT LTD.
CMP: Rs27,523.95
BSE Code:500387
I'm holding 50 shares of Shree Cement at Rs 30,675. Should I continue to hold this stock? If yes, suggest appropriate stop-loss for the stock.
- Shaukat Ali
MAINTAIN STOP-LOSS OF RS 26,500
The stock, forming a head & shoulders pattern on the weekly chart, has bearish implications. The neckline is placed around Rs 26,500 level. A weekly close below this level will confirm the bearish implications. The stock moved above the 50-DMA during this week. The 20-DMA is acting as resistance for the last few days. The relative price strength is as low as 22, which indicates a weaker strength. The stock, which broke the long up trending support line drawn from September 2020 lows, is the first indication of weakness. The weekly MACD line is below the signal line, which is not bullish. The ADX (26.05) looks strong but it has declined for the past two months, which means that the trend strength is poor. The RSI is taking support at the zone of 50. The right shoulder high is at Rs 29,506 while the neckline is at Rs 26,500. Avoid this stock between these levels. As you are already holding the stock, maintain the strict stop-loss at the neckline level on a weekly basis.
TATA MOTORS LTD.
CMP : Rs306.30
BSE Code : 500570
Please share your view on Tata Motors. Is it a good time to accumulate this stock for the long-term?
- Mrityunjay Pathak
CUP PATTERN SUPPORT IS PLACED AT RS 280
The stock declined sharply during the current week and broke the five-week tight range.It formed a 13-week cup pattern and formed parallel tops at Rs 357. The weekly support of a cup pattern is placed at Rs 280. The breakdown of tight range on high volume indicates the distribution by big investors. The relative price strength (RS) has also declined to 71. The stock closed below the 20 and 50-DMAs. The weekly histogram shows a significant uptick in the bearish momentum. The RSI fell below the prior swing low. Meanwhile, the -DMI making higher lows is a sign that bears are taking control of the stock. The flattened ADX shows that the trend strength is neutral. It is better to buy this either above the recent high of Rs 357 or wait for a retesting of the cup bottom. Any bounce from the level of Rs 280 can be bought. In any case, a fall below Rs 280 is bearish. Hence, avoid.
RBL BANK LTD
CMP : Rs215.60
BSE Code : 540065
I'm holding 250 shares of RBL Bank at an average cost of Rs 207. What target should I look for this stock?
- Boban John
A MOVE ABOVE 225 IS POSITIVE FOR THE STOCK
The stock is trading in the zone of Rs 224-Rs 209 for the past 25 trading sessions and reacting from the resistance. The stock is trading above the short and long-term averages. The 20-DMA has flattened while the Bollinger bands contracted for the last 15 sessions. There is a negative divergence visible on the RSI on the daily chart. However, the weekly MACD has given a buy signal. The weekly ADX (11.20) is not showing any trend strength. Its relative price strength is very poor i.e. at 19, as the stock is an underperformer in the sector. In other words, the stock is neutral and not showing any strength on both sides. Keep your buy price as stop-loss and continue. If it moves above Rs 225 and sustains, it may test the level of Rs 275. Maintain strict stop-loss at your buy price.