Technical Portfolio Guide
SPANDANA SPHOORTY FINANCIAL LTD.
CMP:Rs447.15
BSE Code:542759
I am holding the stock of Spandana Sphoorty at an average cost of Rs 670; what should I do now?
- Sanjiv Verma
MAINTAIN A STOP-LOSS OF RS 393 ON A CLOSING BASIS
The stock declined by 71 per cent from its high made during April 2020. For the last 18 months, the stock has been trading in the range and tested lows again this week. The current 18-month long base between Rs 405 and Rs 830 could be a Stage- 1 base, as long as it does not breach the low again. On Wednesday, it gained 19 per cent with a massive volume, indicating some fundamental change in the company or positive development. Look for management changes in the company. Your entry price is one of the swing highs, which is currently 30 per cent away. The stock is trading below all the key moving averages. A weekly close above Rs 494 is positive, and it can test Rs 556 and Rs 606. It needs a lot of buying demand to push the prices towards your entry price. Hold the stock with a recent low of Rs 393 as a stop-loss. You need to cut down the losses at some point in time
QUESS CORP LTD.
CMP: Rs850.00
BSE Code:539978
Share your views on Quess Corp.
- Akula Suresh
AVOID THIS STOCK FOR A FRESH PURCHASE
The stock was moving in a rising channel and took support at prior resistance. It declined below the prior minor swing low. After retracing the 61.8 per cent retracement level of the prior downtrend, it formed lower highs within the rising channel. As the stock formed lower tops and lower bottoms, it is a sign of a short-term or minor down trend. However, as long as it trades above Rs 811, the intermediate trend is up. The 50-DMA is trending down and acted as a resistance recently. The volumes indicate the distribution in the last two weeks. The relative price strength (RS) is poor at 49. Mansfield's relative strength indicator is just hanging around the zero line. In short, the stock is at a critical point. A move below Rs 811 will indicate the reversal and bearish patterns. For a positive development, it needs to move above at least Rs 911. Otherwise, avoid this stock for a fresh purchase.
BHANSALI ENGINEERING POLYMERS LTD.
CMP: Rs162.00
BSE Code:500052
What's the short-term perspective for BEPL?
- Shyam Shah
STAY AWAY FOR NOW
After touching the previous lifetime high, the stock declined below the prior swing lows,indicating the trend reversal. There are at least three shooting star candles in the current downswing, which is also a serious bearish sign. It shows that every rise is being used as a selling opportunity. The negative divergence in RSI has got bearish confirmation too. The weekly MACD line is just around the zero line, and the histogram suggests a strong bearish momen-tum. Its relative price strength (RS) is as poor as 28. Mansfield's relative strength indicator is below zero on the daily as well as the weekly chart, indicating the underperformance compared to the broader market. The short-term support is placed at Rs 146. Below this level, it can test Rs 122. Stay away for the time being!
AUTOMOTIVE AXLES LTD.
CMP: Rs1,275.00
BSE Code:505010
I am holding the stock of Automotive Axles Ltd at Rs 1,480. Should I average it at the current levels?
- Pinkalkumar Desai
EXIT THE STOCK IF IT DECLINES BELOW THE SUPPORT ZONE OF RS 1,170-RS 1,242 LEVEL .
The stock formed lower tops and lower bottoms. The major swing low is at Rs 1,170. The stock is below the 30-weekly average after holding as a support for several weeks. It also declined below the long-rising trendline support. It is also trad-ing on the 200-DMA for the last four days. A move below this long support of Rs 1,247 will be a strong bearish sign. The weekly MACD shows the bearish momentum. The RSI is just at the prior swing low. A move below the zone of 46-49 will be a weaker sign. The Elder impulse system has given a sell signal. Mansfield's relative strength indicator is below the zero line and indicates weakness. It is just holding onto the anchored VWAP support of Rs 1,242. A close below Rs 1,170-Rs 1,242 zone support is a clear downtrend. Your buy price is almost near the recent high. Exit the stock if it declines below the support zone as per the risk appetite. It must move above Rs 1,456 for a bullish view.