Technical Portfolio Guide
UNION BANK OF INDIA
CMP : Rs44.80
BSE Code : 532477
Should I buy the stock of Union Bank of India at the current levels?
- Bharat Rakheja
AVOID BUYING THIS STOCK
The stock declined 95 per cent from its lifetime high of Rs 589. It also declined 49 per cent from this year's high. The stock is in a bear grip for the past four years. It has been in the stage-1 consolidation since the low of March 2020. The stock is forming higher lows and higher highs. However, it is still trading below its 61.8 per cent Fibonacci retracement level of its prior fall, which started from the high of Rs 65.80 to the low of Rs 22.65 level. Its rela-tive strength is poor at 30. It is also an underperformer within the banking sector as well as the PSU space. The ADX is at 17.64, showing weaker trend strength. The weekly MACD is below the zero line. It is better to avoid buying in this stock. Only a close above Rs 70 would give some positive signs. In any case, if the stock declines below Rs 40, it may resume the downtrend.
MEP INFRASTRUCTURE DEVELOPERS LTD.
CMP : Rs26.65
BSE Code : 539126
What’s your view on MEP Infrastructure Developers?
- Zuzer Mohamedhusain
A CLOSE ABOVE 28.50 IS POSITIVE FOR THE STOCK
The stock declined 94 per cent from its 2017 highs. For the past 18 months, the stock is in a stage-1 consolidation, moving between Rs 10 and Rs 29 in this period. Currently, the stock is near the pivot level of a cup pattern. The depth of this pattern is almost 35 per cent. For the last two weeks, the higher volume suggests an accumulation in the counter. The stock is trading above the key moving averages. It is 24.47 per cent above the 50-DMA and 34 per cent above the 200-DMA and both averages are trending higher. Its relative price strength is improving. The weekly MACD has given a fresh buy signal. Its ADX (41.27) suggests that solid trend strength is building up. In short, the stock may register breakout if it closes above Rs 28.50. The breakout target is a prior swing high of Rs 44. However, a decline below the prior week's low is negative for the stock.
NURECA LTD.
CMP: Rs1900.25
BSE Code:543264
I'm holding 120 shares of Nureca Ltd at an average price of Rs 2,100. What should be my stop-loss?
- Nagabhushana Rao
STOP-LOSS CAN BE PLACED AT RS 1,818
The stock has a price history of just 33 weeks. After a listing base breakout, it has appreciated from Rs 555 to Rs 1,792 in just five weeks. Since then, it has been consolidating for the past 22 weeks. Currently, the stock is forming an inside bar and is 18 per cent below the last week's pivot. The indicators are not formed properly on longer-term charts. The immediate support is at Rs 1,818. Below this, the 50-DMA is at Rs 1,690.
PRICOL LTD.
CMP : Rs109.10
BSE Code : 540293
I’m planning to buy the shares of Pricol. Is it a good time to invest in this stock?
- Kaushik Bhattacharya
A MOVE ABOVE RS 110 IS POSITIVE FOR THE STOCK
The stock is forming an inside bar after touching its lifetime high. The stock is clearly in a strong uptrend and moving in a staircase manner. It is above all the key moving averages. The stock is 17 per cent above the 10-week average as well as the 40-week average. Its relative strength is strongly 73. The weekly ADX (27.80) is show-ing reasonable trend strength. The RSI is in a bullish zone. The Elder impulse system gave a strong bullish sign last week. Pring' KST has been in the bullish zone for a long period. The stock is clearly above the anchored VWAP resistance. A move above Rs 110 is positive for the stock and a decisive close above the previous week's high is a big positive. Maintain a stop-loss at Rs 104.