Technical Portfolio Guide

MMTC LTD.

CMP : Rs43.60
BSE Code : 513377 

What's your take on MMTC for the medium-term? Is it a good stock at current levels to buy?
- Anil Kumar

A MOVE ABOVE 45 IS POSITIVE FOR THE STOCK
The stock is holding the 200-DMA support and bouncing from the prior uptrend. Short to medium-term moving averages are trending down. Its relative strength is poor at 58. During the decline, the volume too was below average. The current week's price rise, which is on a higher volume than the previous week, is a positive sign. On the daily chart, it closed above the five-day high. The daily RSI has moved above the prior swing and the weekly RSI is meeting Andrew Cardwell's buying rule. The price has made a higher low but the indicator has made a lower low and is bouncing along with the price. A move above Rs 45 on a weekly closing basis is a positive sign. As long as it sustains above Rs 41, stay positive. The short target is placed at Rs 51.50 and Rs 54.40. 

E.I.D.-PARRY (INDIA) LTD.

CMP : Rs410.15
BSE Code : 500125 

Please share your view on EID Parry. I'm holding this stock from the level of Rs 340. Should I book profit or continue to hold?
- Ajith Vasudevan

KEEP STRICT STOP-LOSS AT RS 370
The stock is consolidating for the last 15 weeks and is forming rounding top patterns on a weekly timeframe. It has not made a swing low and is well above the rising trendline support. The trendline support i.e. 40-week average and previous resistance are almost at the same level of Rs 370. Currently, the stock is trading at the prior week's high and closed above the 20-DMA. It faced resistance at 50-DMA. A close above Rs 420 level will resume the uptrend. As the stock is consolidating for over 15 weeks, all indicators are not so encouraging. As your entry price is above the support level, it is advised to keep a strict stop-loss at the support of Rs 370. 

OIL AND NATURAL GAS CORPORATION LTD.

CMP : Rs115.45
BSE Code : 500312

Is ONGC a good bet for short-term trading? What are the key levels to watch out for in this stock?
- Sujith Unni

ONLY A DECISIVE CLOSE ABOVE RS 118 IS A POSITIVE SIGN FOR THE STOCK
The stock took support at 200-DMA for the last two weeks and is trading below 50-DMA for the last seven weeks. It is moving in lower highs and lower lows fashion on the daily chart. It took support at the previous swing low and is currently bouncing. It closed above the 20-DMA and faced resistance at 50-DMA. The MACD is about to give a buy signal. The RSI reached the prior swing high and is above 50. The +DMI has crossed the -DMI. However, the strength of the trend is a cause of concern. The ADX is below 10, which shows weaker trend strength. Its relative price strength is poor at 37. The volume recording is below average. Only a decisive close above 50-DMA (Rs 118) will be a positive sign for the stock. However, a decline below Rs 108 is not good for the stock. The stock has poor technical strength. It is better to focus on higher relative strength stocks. 

TVS MOTOR COMPANY LTD.

CMP : Rs511.95
BSE Code : 532343 

I'm holding 1,000 shares of TVS Motor at Rs 460. Please suggest an appropriate stop-loss of this stock.
- Amit Sharma

KEEP A STOP-LOSS AT RS 500 
The stock closed below the prior major swing low. It is trading below the major moving averages. It is 10.13 per cent below the 200-DMA and 12.51 per cent below the 50-DMA. All the short and long-term averages are trending down. As it closed below the prior swing low, it has broken a double top pattern too. The MACD is also below the zero lines and the histogram shows a strong bearish momentum. The RSI is in a bearish zone. With the last two days of gains, the stock may retrace towards a 20-DMA of Rs 546. It is better to watch its price behaviour around 20-DMA. However, as long as it sustains above Rs 500, be with a positive bias and also, maintain a strict stop-loss. It will help you to protect your position with a small profit.