Technical Portfolio Guide

MOREPEN LABORATORIES LTD

CMP: Rs 56.80
BSE Code: 500288

Is Morepen Laboratories good for investment purposes at the current levels?
- Akhtar Kamal

A CLOSE ABOVE THE ZONE OF RS 61-62 IS POSITIVE FOR THE STOCK
The stock has formed a base at Rs 46.70. After over 40 per cent of the prior sharp decline and testing almost the prior swing high. It is above all the key short and long-term moving averages on the daily chart. The MA Ribbon is trending along with the MACD line, which is above the zero and signal lines. On the daily chart, MACD has given a buy signal. The current week's volume is higher than what it was in the first week of July. The +DMI has just moved above the –DMI, which is a positive sign. The concern is that it tested the breakout level after the big breakout of December 6. A fall below Rs 54.5 will be a failed breakout. The prior minor swing low is at Rs 50. This zone of Rs 50-Rs 54.5 is critical support for the stock. Below these levels, it is better to avoid the stock for a fresh purchase. Taking an invest-ment call requires at least a close above Rs 61-Rs 62 zone of resistance. 

JINDAL POLY FILMS LTD

CMP: Rs1,184.00
BSE Code: 500227 

I am holding 150 shares of Jindal Poly Films Ltd at an average price of Rs 986. What could be the target for this stock in the near term?
- Mausum Sinha

THE SHORT-TERM TARGET IS PLACED AT RS 1,268 AND RS 1,358 
The stock is trading at a new lifetime high and has broken out of a 17-week flat base pattern with a consistent above-av-erage volume. For the last three weeks, the higher volume shows that the smart money is picking the stock aggressively. The institutions have increased their stake in the company by 3.5 per cent. Its relative price strength is promising at 70. It is trading around 16 per cent above the 50-DMA and 32 per cent above the 200-DMA. The weekly MACD has given a fresh buy signal. The RSI is in a strong bullish zone while the ADX (69.08) shows solid trend strength. The Elder impulse system and Pring's KST also indicate strong bullish signs. Your purchase price is at the prior breakout. As the stock registers a strong fresh breakout, hold the stock with the prior week's low as a stop-loss. The short-term targets are placed at Rs 1,268 and Rs 1,358. Above these levels, continue with a trailing stop-loss

COMPUAGE INFOCOM LTD

CMP: Rs 31.40
BSE Code: 532456

Please share your outlook for Compuage Infocom. Is this a good time to buy this stock?
- Manoj Kumar

ONE CAN ACCUMULATE THIS STOCK IN THE RANGE OF RS 31-RS 33 LEVEL
The stock just registered a 21-week double bottom pattern by closing above the prior swing high with a massive volume. It is trading 20 per cent above the 50-DMA and 29 per cent above the 200-DMA. And both are in the uptrending mode. The weekly MACD has given a fresh buy signal and it is above the zero line. The RSI is in a strong bullish zone and is above the squeeze area. The +DMI is much above the -DMI and indicates positive bias. It is trading well above the anchored VWAP. The Elder impulse system shows that the stock has been in the bullish zone for three weeks. In the monthly chart, it has broken out of a cup & handle pattern while the depth of the cup is almost 77 per cent. As all the short and long-term moving averages are trending up in ascending order, it is in the bullish structure. One can accumulate this stock in the range of Rs 31-Rs 33 zone and maintain a stop-loss at Rs 26. The short-term target is at Rs 43 while in the medium-term, it can test Rs 55.

POLYPLEX CORPORATION LTD.

CMP: Rs1,972.60
BSE Code: 524051

I am holding 25 shares of Polyplex Corporation for almost one year. Can I book profit now?
- AJAY GAGGAR

HOLD THIS STOCK WITH PRIOR WEEK’S LOW
It registered a six-week flat base breakout and is trading at a new lifetime high. The stock is meeting the CANSLIM characteristics of investing. Its EPS strength and relative price strength are 81, which indicate that the stock outperformed 81 per cent of the listed companies. It is above the 50-DMA and strongly supports the recent base. It is 45 per cent above the 200-DMA, and it is in a clear uptrend. The weekly MACD has given a fresh buy signal. The RSI is in a very strong bullish zone. The ADX (46.02) shows solid strength in the trend. It crossed the anchored VWAP resistance, and the Elder impulse system shows this strong bullishness. In short, the stock has given over 196 per cent gain and is in a long-term uptrend. Hold the stock with the prior week’s low as stop-loss or at Rs 1,790. The short-term target is Rs 2,276.