Technical Portfolio Guide
ASHOK LEYLAND LTD.
CMP: Rs125.35
BSE Code:500477
What’s your view on Ashok Leyland from a medium-term perspective? Is it a good time to buy now?
- Santosh Kanhaiyalal Vyas
BUY ONLY ABOVE RS 137
The stock has been consolidating in the range of Rs 108-Rs 137 for the past 25 weeks and forming a Stage-2 base. It has given over 320 per cent return since March 2020 low in just 45 weeks and is seen consolidating. During this consolidation, the stock has mostly moved less than the 23.6 per cent retracement. It is trading above the 40 and 30 weekly averages and facing the resistance at a 10-week average. The weekly RSI is taking support around the level of 50 for now. As the consoli-dation is 25-week long, the relative price strength is poor at 39. The volume has been declining since September 2020. The stock is trading around the anchored VWAP during this basing period. The 200-DMA is 6.16 per cent below the price. As the stock has just crossed the 50-DMA, it may retest the range of Rs 137 again. A fresh entry can be made only above Rs 137, which is a consolidation breakout for short to medium-term perspectives. Generally, the October-December quarter is positive for the automobile sector.
NIPPON LIFE INDIA ASSET MANAGEMENT LTD.
CMP: Rs440.25
BSE Code:540767
I’m planning to buy 300 shares of Nippon Life AMC. Is this the right time to invest in this stock?
- Kora Siva Prakash Reddy
IT CAN BE ACCUMULATED BETWEEN RS 440-RS 453
Nippon Life India Asset Management Ltd (NAM-India) is one of the first-listed AMC in India. The stock has broken out of a Stage-1c eight-week flat base with above-average volume. It is trading above 40, 30, and 10 weekly averages, and they are all trending higher, meeting Mark Minervini's trend template rules. It has been making higher tops & higher bottoms on the weekly chart since March 2020 low. The RSI is in a strong bullish zone and breaking out of a zone. The histogram shows a strong momentum on the upside. The weekly ADX (28.1) shows solid strength in the trend. It is also trading near the prior all-time high. It can be accumulated between Rs 440-Rs 453 with a stop-loss of Rs 400. The medium-term target is at Rs 605.
GIC HOUSING FINANCE LTD.
CMP: Rs153.80
BSE Code:511676
What’s your take on GIC Housing Finance for short-term investment purposes?
- Avijit Bhattacharyya
STOCK IS EXPECTED TO CONSOLIDATE BEFORE MAKING A BIG MOVE
Currently, the stock is trading below the short-term 20-DMA and it is almost 8 per cent below its 50-DMA. It has formed a hammer two weeks ago and is currently trading above it. The weekly RSI is seen taking support at 50 zone. ADX (32.34) shows decent trend strength. The weekly MACD histogram shows weaker momentum. Relative price strength (RS) is at 45, which shows a lag. The volume is declining for the past seven weeks. As Bollinger bands are narrowing on a daily chart, expect consolidation for some time before an explosive move.
MARICO LTD.
CMP: Rs574.85
BSE Code:531642
I’m holding Marico for the past one year. Should I book profits or add more at the current levels?
- Bhavanarayana Rao
KEEP A TRAILING STOP-LOSS AT RS 500
The stock is trading at a lifetime high. It has broken out of an eight-week tight base with a higher volume during the last week. Its relative price strength is decently at 52. This stock is also meeting Mark Minervini's trend template rules as it is trading above the 40, 30, and 10-weekly averages and all of them are trending higher. The MACD has given a fresh buy signal. The RSI is in a strong bullish zone. The weekly ADX (48.55) shows solid trend strength. On every timeframe, the stock is in a very strong uptrend. It is above the anchored VWAP while Pring's KST shows bullish strength. The Elder impulse system has given a fresh buy signal. In short, the stock is very bullish; thus, hold the existing position with a trailing stop-loss of Rs 500.