Technical Portfolio Guide
BF UTILITIES LTD.
CMP: Rs 410.50
BSE Code:532430
I’m holding 200 shares of BF Utilities at an average price of Rs 447. What should I do now? Please suggest.
- Vikash Kumar
A CLOSE BELOW RS 402 IS NEGATIVE FOR THE STOCK
The stock has been consolidating for the last 21 weeks in a symmetrical triangle. Currently, it is trading at the support level. It is also trading below the 20-DMA and 50-DMA. The Bollinger bands on a weekly chart suggest that a further decline towards the triangle base is possible. It declined by 24 per cent from the recent top and is trading below the anchored VWAP. The relative price strength (RS) is very poor at 47. The Mansfield Relative Strength indicator, which declined just below the zero line, indicates the underperformance of the stock. The Elder impulse system has given a fresh sell signal. The RSI is just hanging around the 50 zone while the MACD line has been declining since July. The ADX (31.69) strength is in the down move. In short, the stock is consolidating in a symmetrical triangle. A close below Rs 402 will be negative for the stock. The next support is placed at Rs 359. For a positive bias, it needs to close above Rs 470.
VARROC ENGINEERING LTD
CMP: Rs314.05
BSE Code:541578
What’s the short-term outlook for Varroc Engineering?
- Namachivayam S
AVOID THIS STOCK IF IT CLOSES BELOW THE PRIOR WEEK’S LOW
After declining 45.55 per cent from its recent top, the stock is forming a base between the zone of Rs 260 and Rs 277. It just moved above the 20-week average and 50-DMA. Volume recorded above-average in the current week is a sign of accu-mulation by the big players. The MACD also has given a fresh buy signal. The weekly Elder impulse system is showing a bullish bias in the stock. Pring’s KST has also given a fresh buy signal. There is an uptick in Mansfield Relative Strength, which shows improving price performance compared to the broader market. It needs to close above Rs 334 for a bullish breakout. It is better to wait for a long position for now. Avoid this stock if it closes below the prior week’s low.
IIFL FINANCE LTD.
CMP: Rs325.35
BSE Code:532636
What can be the medium-term target for IIFL Finance?
- Mustafa Vadnagarwala
BETTER AVOID THIS STOCK FOR LONG POSITIONS
The stock declined sharply below the 20-DMA after registering a failed breakout of 33 weeks of consolidation. It is approaching 10-weekly average support. The decline of the last two weeks is showing strong distribution in the stock. Generally, failed breakout retests the prior swing lows. Its relative price strength is fairly at 67. The Mansfield Relative Strength is just on the zero line, and any decline below the zero line will be a weaker signal as the stock closing below the prior week’s low is also a weak signal. Pring’s KST is also showing a bearish set-up. It is better to avoid this stock for a long position. Only a move above Rs 347 will be positive for the stock.
STATE BANK OF INDIA
CMP: Rs503.95
BSE Code:500112
Does SBI qualify for a buy at the current levels?
- Mohanasundaram Murugesan
WAIT FOR THE STOCK TO CLOSE ABOVE 20-DMA
The stock is trading at a rising support line. It retraced 7 per cent from its recent swing high. Currently, it is trading below the 20-DMA. The 50-DMA support is placed at Rs 478. The lower volume is a positive factor in this fall. Generally, the counter-trend consolidations will attract lower volumes. The daily MACD is below the signal line while the histogram shows bearish momentum. As Bank Nifty is underperforming the broader market, it may consolidate further. A test of 50-DMA and a sharp bounce will be positive for the stock. At the same time, a close above the prior day or week’s high is a reversal sign for the stock. Or at least, the stock must close above the 20-DMA to take a long position.