Technical Portfolio Guide
DCB BANK LIMITED
CMP : Rs108.90
BSE Code : 532772
I'm holding 1,200 shares of DCB Bank at an average price of Rs 94. Is this a good stock to hold for the long term? If yes, what is the target?
- Keshav Amei
HOLD WITH A STOP-LOSS OF RS 100
The stock declined 76 per cent from its June 2019 top during March 2020 market crash. Currently, the stock is moving in higher tops & higher bottoms fashion on the weekly chart. Recently, it took support at the 50-weekly average and moving higher. For the past 27 weeks, it is consolidating between Rs 85 and Rs 126. The stock reached near downward sloping trendline resistance. It is trading above all the short and long-term moving averages. The 50-DMA is trending up. The weekly and the daily MACDs have given a fresh buy signal. The RSI is in a bullish zone. The +DMI is at its previous high. There is an uptick in the ADX, which shows that the trend strength is picking up. The Elder impulse system and Pring's KST have given a fresh buy signal. Hold your stock with 50-DMA (Rs 100) as a stop-loss.
KAVERI SEED COMPANY LTD.
CMP : Rs749.70
BSE Code : 532899
What's the short-term outlook for Kaveri Seed Company Ltd (KSCL)?
- Santhanam
S A MOVE ABOVE 750 IS POSITIVE FOR THE STOCK
The stock is non-trending for the last four years. It is trading between Rs 360-Rs 700 with minor swings limited to weeks. Currently, the stock is trading just above the 50-DMA and forming a cup pattern for the past seven weeks. Before the current pattern, it has broken out of 39-week cup and retested it with the current pattern's bottom. Because the counter-trend consolidation is on, its relative price strength is poor i.e. at 39. The stock is taking support at 34-week EMA during this consolidation. The momentum is flat. A move above Rs 750 on the weekly basis is positive for the stock. It can test the level of Rs 886 in the short term. However, avoid if it declines below Rs 670
CIPLA LTD.
CMP : Rs973.35
BSE Code : 500087
Kindly share your technical perspective on the stock of Cipla.
- Desaboina Ravindra
AS LONG AS THE STOCK TRADES ABOVE THE PRIOR SWING HIGH, BE WITH A POSITIVE BIAS
The stock is trading near an all-time high and one per cent above the prior pivot. After breaking out of a 7-week cup, the stock is consolidating for the last five weeks in a tight range. The 10-weekly moving average is acting as a support for the last two months. During this consolidation, the volume declined to a minimal level. Its relative price strength is poor i.e. at 31. The MACD histogram shows a flattish momentum. There is class-B divergence in RSI as it moves in parallel tops while the price is moving higher. As long as it trades above the prior swing low, be with a positive bias. A move above Rs 980 is positive, and it can test Rs 1,080 in the short term. In any case, if it fails to move higher, wait for retesting of prior swing low.
NHPC LTD.
CMP : Rs26.10
BSE Code:533098
I'm holding 3,000 shares of NHPC bought recently. What's the prospect of this stock?
- Dhanesh Gandhi
CHANCES OF PRICE APPRECIATIONS ARE LIMITED
current price offers over 6 per cent of dividend yield, the stock is struggling to move above the levels of Rs 30. The current price structure looks like a Stage-1 consolidation. The volume trend is erratic. The price action lacks a rhythm of a good stock. The strong fundamentals are not reflecting the price. It is currently forming a flat base for the past nine weeks. The pivot is at Rs 27.60. Above this level, it may face resistance at Rs 29.10. The stock will come out of Stage-1 only above Rs 29.10. As long as it trades below Rs 29, the opportunity is limited. Those who are interested in dividend yields can accu-mulate at every dip. Besides, the chance price appreciations are limited.