Technical Portfolio Guide

TATA STEEL LTD.

CMP : Rs1,435.00
BSE Code : 500470

What’s your view on Tata Steel for short-term trading?
- Ashwin Shah

WAIT FOR CLOSE ABOVE THE PRIOR WEEKLY BAR HIGH FOR LONG POSITION
The stock is trading near a lifetime high. After achieving the 9-week flat base breakout target, it is seen consolidating for the past two weeks. Its relative price strength (RS) is good at 83, which shows that the stock is outperforming the broader market. For the last ten months, the 10-weekly average is acting as key support. Currently, the stock is above all its key short & long-term averages, and they all are trending up. This is an indication that the stock is in a strong uptrend. The stock is up by 470 per cent from March 2020 lows. After this huge vertical rise, the stock may enter into a consolidation phase. It may form a counter-trend consolidation pattern in the next five weeks. There is a negative divergence in all the leading indicators. The RSI made a lower top in the overbought zone a weekly chart. The positive directional movement indicator i.e. +DMI has also formed a lower low. This indicates that the stock may consolidate before taking another decisive move. There are no bearish signs in the stock. A move below the prior bar low will indicate weakness. Wait for a close above the prior weekly bar high to take a long position for a decent gain.

TRIVENI ENGINEERING & INDUSTRIES LTD.

CMP : Rs174.35
BSE Code : 532356 

I’m holding 150 shares of Triveni Engineering at an average price of Rs 148. What is the likely target for this stock in the next 3-5 months?
- MAHESH CHANDRA PATHAK

TAKE PARTIAL PROFIT IF IT CLOSES BELOW RS 175
The stock declined 6.29 per cent below the 50-DMA while it is trading 4.84 per cent below the 20-DMA. The short-term average i.e. 20-DMA is trending down. This indicates that the stock is witnessing a counter-trend phase. It is taking support between 23.6 per cent and 38.2 per cent retracement levels. Its relative price strength is also declining, which currently stands fairly at 76. The weekly MACD is about to give a sell signal. The -DMI is moving higher. The declining ADX shows that the trend strength is fizzling out. The RSI is declining from the overbought zone. A move below 60 will give a further weaker signal. The Elder impulse system shows that the stock is in the neutral zone. As you are holding the stock with a decent profit, take partial profits if it closes below Rs 175 on a weekly basis. Keep a stop-loss at Rs 155 and exit all the positions.

IDFC FIRST BANK LTD

CMP : Rs45.85
BSE Code : 539437

Please share your view on IDFC First Bank.
- Nalin Kurani

AVOID THIS STOCK FOR NOW
The stock has broken the descending triangle by closing below the prior swing low. It formed lower top and lower bottom, which is a beginning of a fresh downtrend. The stock is trading below the long and short-term averages. It is 8.89 per cent below the 20-DMA and 15.50 per cent below the 50-DMA. The weekly MACD line is below the signal line since April and is just on the zero lines. It also declined below the prior resistance line. The RSI is in a bearish zone. With the current price structure, it is not suitable for purchase. At least it should move above the 50-DMA and prior swing high. It may test Rs 38. Avoid for now! 

JINDAL POLY FILMS LTD.
CMP : Rs1,091.00
BSE Code : 500227

How is the stock of Jindal Polyfilms placed from a technical perspective? I’m holding 100 shares of this stock.
- Shrirang Joshi

KEEP A STOP-LOSS AT RS 940-RS 965 ZONE
After hitting a new lifetime high, the stock is witnessing huge volatility during the current week. It took support at a 10-weekly average. The volume recorded was above average for the last two weeks. Its relative price strength (RS) is fair at 72. There is a hidden negative divergence in the RSI. The daily MACD has given a sell signal. It tested the 15-week con-solidation breakout level. It is forming hanging man kind of a candle in the current week. It may enter into consolidation before taking a decisive trending move. The stock does not show any significant weakness as of now. The only concern is the loss of momentum. Keep a stop-loss at Rs 940-Rs 965 zone.