Technical Portfolio Guide
SAREGAMA INDIA LTD
CMP: Rs4990
BSE Code:532163
I am gaining nearly 200 per cent in Saregama. What should I do: Hold or book profit?
- Vishnu Reddy
HOLD THIS STOCK WITH CURRENT WEEK’S LOW (RS 4,778)
The stock is trading near its lifetime high. After 12-week of ascending base, the stock has gained almost 40 per cent, and currently, it’s moving sideways for the past three days. The stock, which is trading at a lifetime high, is above all the long and short-term moving averages. There is no reversal signal as of now. However, it developed a negative divergence in the weekly RSI, which might be an early sign of exhaustion. In any case, if the weekly RSI closes below 68, the stock will enter into a consolidation. The 10-period weekly moving average is Rs 4,485 while the previous week's low is Rs 4,321. The major swing low is at Rs 4,075 zone. As long as the stock trades above this Rs 4,075-Rs 4,321 zone support, be with a positive bias. Otherwise, take out your capital if it declines below Rs 4,580, which is 20-DMA. In any case, if it gives a weekly close above Rs 5,120, continue the positions with a trailing stop-loss of Rs 4,778 (current week's low).
QUICK HEAL TECHNOLOGIES LTD
CMP: Rs237.6
BSE Code:539678
I am holding the shares of Quick Heal Tech at Rs 250. However, the stock is oscillating in a narrow range. What should I do now?
- Yogendra kumar
HOLD THIS STOCK WITH A STOPLOSS OF RS 228.
The stock has been consolidating for the past 17 weeks in the range of Rs 214-Rs 245. It has not formed a major low. After over 25 per cent decline on August 8, it was consolidating just below the 20-week moving average. Besides, it just moved above the 20-week average. The stock is oscillating around 50 and 200-DMA. The daily MACD is above the zero line while the weekly MACD line is just on the zero line. An increasing histogram is a positive sign. The relative price strength is poor at 36. Mansfield’s relative strength indicator is below the zero line on a weekly timeframe, which shows underperformance. As the stock is forming a long upper shadow candle, it’s an indication of selling at higher levels. It is better to have a stop- loss at Rs 228, which is the current week's low. A move above the consolidation zone or Rs 245 will be positive.
INDIAN ENERGY EXCHANGE LTD.
CMP:Rs265.85
BSE Code:540750
I bought IEX for a short-term at a breakout of Rs 275 but it has witnessed a fall from its high. Should I exit?
- Dhruv Luthra
HOLD THIS STOCK WITH A STOP-LOSS OF RS 250.
The stock is consolidating between Rs 214 and Rs 318 for the past 39 days. Currently, it is on the 50-DMA support. Though it declined 17 per cent from its lifetime highs, it has not formed a swing low yet. The relative price strength is as high as 85 while Mansfield’s relative strength indicator shows a positive bias at 0.53. Pring's KST is shown a positive bias on the daily chart. It just hangs on the anchored VWAP. The momentum has been lagging because of sideways price action for a long time. On the weekly chart, it is forming a dark cloud cover candle. A close below Rs 250 will be a bearish engulfing candle. If you are a risk-averse trader, it’s better to have a stop-loss at Rs 250. A move above Rs 270 will be positive, and it can also test the previous high.
CARTRADE TECH LTD
CMP : Rs904.4
BSE Code : 543333
Cartrade Tech is falling consistently. Is it the right time to enter?
- Vidya cm
AVOID THIS STOCK FOR NOW.
No, it’s not the right time to enter! The stock is falling since its listing. It is in a clear downtrend. Unless it forms a base and registers a breakout, it is better to avoid this stock as it has only 17 weeks of price history. It has also not formed any price pattern yet. The 200-DMA is yet to be formed. It is trading below all the short- term moving averages and is very near to its all-time low of Rs 880. All the indicators are showing a bearish bias on the stock. There is no relative strength. The current week’s candle is a bearish engulfing, and any close below Rs 880 will further be negative for the stock. It must move above Rs 1,055 for a positive bias. Avoid this stock for purchase.