Technical Portfolio Guide
KARNATAKA BANK LTD
CMP : RS63.15
BSE Code : 532652
What’s your view on Karnataka Bank for the medium-term? Is it a good buy at the current levels?
- Amandeep Sekhon
AVOID THIS STOCK AT THE CURRENT LEVEL
Technically, the stock is not looking attractive at the current levels. It has formed lower highs.It is facing the resistance of Rs 73.50 since September 2019. The recent pullback rally is halted near 61.8 per cent Fibonacci retracement level of its prior downward move. The MACD line, which declined below the zero line, is giving a weak sig-nal. Its relative price strength (RS) is poor at 31. For the last two weeks, the volume recorded is above average. The weekly directional indicators are at an influx point, showing an explosive move. The weekly RSI (53.72) is in the neutral zone. On the daily chart, the Elder impulse system and Pring’s KST have given a fresh signal. In short, the stock is not at attractive levels right now. Try to focus on high relative strength stocks.
ICRA LTD
CMP : Rs3,596
BSE Code : 532835
I’m holding 25 shares of ICRA at Rs 3,830. Should I continue to hold? Please suggest appropriate stop-loss.
- Samiran Naskar
KEEP A STOP-LOSS OF RS 3,400
The stock is trading 9 per cent below the pivot level and 6.74 per cent lower than your entry price. It has registered some erratic price behaviour, and it is difficult to trade on a short-term basis. Though the stock has not made any lower low, it is not convincingly in an uptrend. Few days of sharp upside moves and several negative candles indicate that it is difficult for a short trader to take a position. For the last four years, it is facing stiff resistance at Rs 3,900-Rs 4,050 zone. It will test the previous high of Rs 4,999 only if it closes above this zone. The stock is taking support at 50-DMA. The weekly MACD shows a decline in bullish momentum. The RSI has formed a lower high and it is showing a negative divergence. Keep a stop-loss at Rs 3,390-Rs 3,400. Above Rs 3,700-Rs 3,825 zone, the stock is positive.
KEI INDUSTRIES LTD.
CMP : Rs765.00
BSE Code : 517569
Please share your view on KEI Industries as I’m holding 200 shares of this stock.
- Raghavendra Kini
MAINTAIN STOP-LOSS AT RS 700
The stock is in 10-week consolidation and is trading near the pivot. The stock is meeting CANSLIM investing characteristics. Its relative price is fair at 66. From a technical standpoint, the stock is comfortably placed above its key moving averages i.e. around 6 per cent and 35 per cent from 50-DMA & 200-DMA. It has recently broken out of a base in its weekly chart and is trading around 1 per cent from its pivot point. The weekly ADX (52.03) is showing a solid strength in the trend. The RSI is in a strong bullish zone. The Elder impulse system has given a fresh buy signal on the weekly chart. In short, the stock is in the ideal buying range. As you have not mentioned your entry price, I suggest you maintain a stop-loss at Rs 700.
ICICI SECURITIES LTD
CMP : Rs 767.85
BSE Code : 541179
I’m planning to buy ICICI Securities at the current levels. What should be the target for the stock in the near term?
- Brijesh Rana
THE STOCK CAN TEST RS 904 IN THE SHORT-TERM
The stock is trading 4 per cent below its prior pivot level. It has broken out of a counter-trend consolidation. It is above all the short and long-term moving averages. It is trading 8.81 per cent above the 50-DMA and 8.33 per cent above the 20-DMA. The MACD is showing strong momentum while ADX (22.21) is also showing a decent strength. The +DMI just moved above the -DMI, and ADX is positive for the stock. The RSI is above the prior swing highs and is in a strong bullish zone. Its relative price strength (RS) is fair at 65. The Elder impulse system has given a buy signal while Pring’s KST is about to give a buy signal. The stock is also above the anchored VWAP resistance. In any case, if it closes above Rs 803, it can test Rs 904 in the short term. Meanwhile, the medium target is placed at Rs 1,067.