Technical Portfolio Guide
BHARAT BIJLEE LTD.
CMP: Rs1,830.55
BSE Code: 503960
I am holding the stocks of BBL. Currently, I am gaining 46 per cent. Should I book profit or hold?
- Jay Oswal
BOOK PROFIT BELOW RS 1,790 LEVEL
After hitting the lifetime high last week, the stock is witnessing profit-booking for the last four trading sessions. It is form-ing a bearish engulfing candle on the weekly chart. There is a negative divergence on the daily chart. It is comfortably placed above its key moving averages i.e. around 21.52 per cent and 40.29 per cent from 50-DMA & 200-DMA. The current consolidation is natural after a sharp rise. Elder impulse system shows that the stock is in a neutral zone. It closed just below the 23.6 per cent retracement level. The 38.2 per cent retracement is at Rs 1,731. The 20-DMA support is at Rs 1,724.80. These are important support levels. In any case, it might close below 20-DMA and thus, it is better to book profits now. Or you can book partial profits at Rs 1,790, which is a minor swing low.
ONWARD TECHNOLOGIES LTD.
CMP: Rs274.60
BSE Code: 517536
I had purchased 1,000 shares of Onward Technologies at the level of Rs 220. What is the target for this stock?
- Nripati Mazumder
THE SHORT-TERM TARGET IS AT RS 344 LEVEL
Currently, the stock is forming an 18-week cup pattern. The formation is a fourth base in the current uptrend. For the last two weeks, the volumes recorded have been above average. The stock registered a new lifetime high, closing with over a 12 per cent rise this week. This strong upmove is above the key moving averages i.e. around 21 per cent & 51 per cent from 50-DMA and 200-DMA. Its relative price strength is very high at 88. Even Mansfield's relative strength indicator is showing the outperformance of the stock compared to the broader market. The cup pattern is low at Rs 212, which is near your purchase price. The weekly MACD is about to give a buy signal. A weekly close above Rs 283 is a breakout, and it can experience a sharp upmove. The short-term target of this breakout is Rs 344, where you can book partial profits as the fourth base breakout may sustain for a longer period of time. In any case, if the stock closes below Rs 242-Rs 236, exit all the positions.
SUN PHARMACEUTICAL INDUSTRIES LTD.
CMP: Rs783.55
BSE Code: 524715
What is your view on Sun Pharma as I'm holding this stock for a long time?
- Umang Sharma
BOOK PROFIT BELOW RS 750 LEVEL
The stock is in stage-2 and retraced 61.8 per cent of the prior downtrend. It is taking support at a 20-weekly average during the stage-2 rally. Even in the current week, it is trading around the 20-week average. The indicators like RSI and MACD are showing weakness in the stock as it declined almost 10 per cent. The Elder impulse system has also given a sell signal. Mansfield's relative strength is also just below the zero line. It also declined below the anchored VWAP support. However, it is yet to form a lower bottom, which is at Rs 750. A close below this level will indicate the trend reversal, which will also be your stop-loss for the holding. Below this, exit your position partially or fully according to your profit percentage.
AU SMALL FINANCE BANK LTD.
CMP: Rs1,187.00
BSE Code: 540611
Please share your view on AU Small Finance Bank. I'm holding this stock from the level of Rs 1,060. Should I book profit or continue to hold?
- S Chourasia
MAINTAIN A STOP-LOSS OF RS 1,070 ON A CLOSING BASIS
The stock has been moving in a range for the last eight weeks. Before that, it declined sharply by 23.6 per cent from its lifetime high. The momentum is dull as the stock is in the neutral zone. The stock is oscillating around the 50-DMA and just holding the support now. The RSI is flat i.e. at 55 zone. Mansfield's relative strength is below the zero line, showing underperformance compared to Nifty 500. However, it is outperforming Bank Nifty. Your purchase price is nothing but a swing low, which itself is a stop-loss for your position. As the stock is in a neutral zone, maintain a stop-loss at 50-DMA of Rs 1,188.70 or Rs 1,070 on a closing basis.