Technical Portfolio Guide

APTECH LTD

CMP : Rs366.35
BSE Code : 532475 

Please share your view on Aptech Ltd as I'm holding 200 shares of this stock.
- Sailesh Hingorany

MAINTAIN A STOP-LOSS AT RS 306
The stock has broken out of 19-day of tight base and an ascending triangle with a massive volume. It is trading near its 2017 high. On a long-term chart, the stock is in a clear uptrend. From a technical standpoint, it is comfortably placed above its key moving averages i.e. around 23.49 per cent and 53.18 per cent from 50-DMA & 200-DMA. The 10, 30, and 40 weekly averages are trending higher, in an ascending order, which meets Stan Weinstein's investing principle. Its relative price strength is fairly at 78, and the buyers’ demand shows that more and more institutions are taking interest in the stock. The MACD line is well above the signal and zero line while the histogram shows a spurt in the bullish momentum. The ADX (39.24) shows solid trend strength in the stock. It is above the anchored VWAP resis-tance too. The tight range breakout resulted in an impulsive move. Overall, the stock has a bullish setup. With the current price in mind, maintain the stop-loss at Rs 306 on a weekly closing basis. In the short term, the stock can retest the previous high of Rs 404. Above it, continue with a trailing stop-loss. 

VIMTA LABS LTD.

CMP : Rs350.25
BSE Code : 524394

Please share your view of Vimta Labs. I'm holding this stock from the level of Rs 270. Should I book profit or continue to hold?
- Udayakumar G

A WEEKLY CLOSE ABOVE RS 347 WILL BE A BIG BULLISH BREAKOUT
The stock is at a prior high and about to register a 14-week consolidation breakout. It chas recorded a massive volume in the current week. The stock is 28 per cent above the 30 weekly average and 41 per cent above the 40 weekly averages. Meanwhile, the 10, 20, 30 weekly averages are trending upward and they are in ascending order. The weekly Elder impulse system has given a fresh buy signal. The MACD is about to cross the weekly signal line. The RSI is in a strong bullish zone and moved above the slopping trendline resistance. The weekly ADX (35.68) shows solid trend strength. The big investors are buying this stock for the past few months and have also increased their stake in the company. The stock moved above the anchored VWAP during the week. As per your risk appetite, hold the stock for big gains with a trailing stop-loss of Rs 295-Rs 315 zone. A weekly close above Rs 347 is a very big breakout for the stock. This breakout's short-term target is Rs 387 while the medium to long-term target is Rs 464. 

CESC LTD

CMP : Rs89.20
BSE Code : 500084 

Is CESC a good bet for short-term trading? What are the key levels to watch out for in this stock?
- Umesh Rathod

AVOID BUYING THIS STOCK FOR NOW
The stock has formed a shooting star candle last week, which has bearish implications.Currently, it is trading below the previous week’s low. In any case, if it closes below the prior weekly low of Rs 92, it will be bearish. The current market price is around Rs 89. Apart from this bearish sign, there is a negative divergence in the RSI. If the RSI closes below 59, the stock will see further downside move. The MACD histogram shows neutral momentum on the weekly chart along with bearish momentum on the daily chart. The stock also declined below the 20-DMA. The 50-DMA support and the lower Bollinger band are placed at Rs 86. There is the highest probability of testing this level in the near term. Earlier, the swing low (Rs 81.5) was formed at the 50-DMA support. However, a breakdown below this strong support means that the stock will enter into a downtrend. Better avoid buying this stock for now as technically, it is not in a sound structure. 

HONEYWELL AUTOMATION INDIA LTD.

CMP : Rs42421.20
BSE Code : 517174 

What's your take on Honeywell Automation India for the medium-term? Is it a good stock to buy at the current levels?
- Chandan Mal

WAIT TO CLOSE ABOVE RS 43,000- RS 43,900 ZONE
The stock is forming a 32-week saucer & handle pattern. Currently, it is holding the 30-weekly average support. The cur-rent weekly bar is engulfing the prior bar. After retracing 61.8 per cent of the prior minor swing, the stock is bouncing. It is trading just below the 10 and 40 weekly averages, which is negative. It needs to move above Rs 43,000 to gain bullish momentum. Its relative price strength is very poor. The weekly histogram is on the zero line while the daily MACD line declined below the zero line. The weekly Elder impulse system has given a sell signal and declined below the anchored VWAP support. It is better to wait to close above Rs 43,000-Rs 43,900 zone for a saucer handle breakout.