Technical Portfolio Guide
HINDUSTAN AERONAUTICS LTD.
CMP : Rs1,119.30
BSE Code : 541154
What’s your view on Hindustan Aeronautics for the short to medium term? I’m holding 200 stocks from the level of Rs 1,080.
- Ednatej Pusuluri
MAINTAIN A STOP-LOSS OF RS 1,000 ON A CLOSING BASIS
The stock is trading at 3 per cent to the prior pivot and consolidating for the last six weeks. Before the consolidation, it had also formed an 18-week cup pattern with 17.34 per cent depth while the cup pivot is placed at Rs 1,124. The current six-week consolidation pivot is at Rs 1,157. Its relative price strength is near 30, forming a higher low. During the last week, the above-average volume was within the consolidation, which is an indication of accumulation by smart money. The stock is currently trading 2.38 per cent above the 20-DMA and 4.6 per cent above the 50-DMA. The momentum on daily and weekly charts is neutral. The MACD line is about to move above the signal line. The RSI just closed above the prior high, which is indicating a possible breakout of consolidation. A move above Rs 1,157 is a big positive and it can test Rs 1,400 in the short term. Maintain stop-loss at Rs 1,000.
G.M.BREWERIES LTD
CMP : Rs577.50
BSE Code : 507488
I’m holding 150 shares of GM Breweries. What should I do as I’m gaining about 5 per cent?
- Karthik Kumar
MAINTAIN A STOP-LOSS OF RS 525
The stock is in the counter-trend consolidation for the past ten weeks. Prior to this, the stock has witnessed a sharp spike after the breakout of 12 weeks of consolidation. Currently, it is trading below the short-term averages of 20-DMA and 50-DMA. It is 24 per cent above the 200-DMA. The volume is below the average. Its relative price strength (RS) is at 51. With Wednesday’s positive close, the MACD is about to give a buy signal. The Elder impulse system shows a bullish signal. Pring’s KST is also about to give a buy signal. The directional movement indicators are at an influx point while the +DMI reached above the -DMI and ADX, which is an indication of bouncing from the current level. A move of Rs 597 is positive and can cross the prior high of Rs 653. Maintain a stop-loss at Rs 525.
JUBILANT FOODWORKS LTD.
CMP : Rs4,041.10
BSE Code : 533155
What’s your take on Jubilant FoodWorks for the long-term? Should I buy at current levels?
- Omprakash Singh
NOT A GOOD RISK-REWARD TRADE
The stock closed at a new lifetime high. The volume burst on Wednesday suggests a fresh rally. After an 11-day tight range, the stock has broken out with huge volume. The stock is trading well above all the key averages. It’s 19.65 per cent above the 50-DMA and 8.77 per cent above the 20-DMA. Its relative price strength is fair at 61. The daily MACD has given a fresh buy signal. The ADX (46.32) shows a solid strength in the trend. The RSI is in a strong bullish zone. The stock is well above the anchored VWAP resistance. The Elder impulse system has given buy signals on the daily and weekly charts. Technically, the stock is in a strong bullish trend. However, the stop-loss level is not suggesting a good risk-reward ratio as it is placed at Rs 3,590 (prior week’s low). The stock may hit Rs 4,670 in the medium term.
NETWORK18 MEDIA & INVESTMENTS LTD.
CMP : Rs50.80
BSE Code : 532798
Can I buy the stock of Network 18 Media at the current levels for three months’ timeframe?
- Praveen Chandran Pranavam
BUY ABOVE THE LEVEL OF RS 52
The stock is consolidating for the past ten weeks. Prior to this consolidation, it had a breakout of the 45-week cup. The current consolidation may lead to a handle formation. It retraced almost 50 per cent. The stock closed above the 20-DMA and faced resistance at 50-DMA. The daily MACD line is at zero lines and is about to give a buy signal. The RSI reached above the zone of 50. The directional movement indicators are not showing any signs of strength in the trend. As the stock is in consolidation, its relative price strength is at 45. During the last volume recorded above average. The Elder impulse system is showing a bullish bar. It closed at anchored VWAP resistance. A move above Rs 52 is positive and it can test the previous high of Rs 58. Above this, continue the position. Maintain a stop-loss at Rs 46.