Technical Portfolio Guide
ARIHANT CAPITAL MARKETS LTD.
CMP: Rs 168.65
BSE Code: 511605
Can I hold Arihant Capital Markets that I bought at Rs 144 for the short term?
- Parag Vaidya
HOLD THE STOCK WITH A STOP-LOSS OF RS 165
Earlier, the stock traded directionless in the broad range of Rs 140-Rs 170. After a splendid rally of over 11 per cent on Wednesday, the stock is nearing its lifetime high of Rs 190. The stock has taken the support of a 20-exponential moving average before bouncing back. It is trading above its short-term resistance zone of Rs 166-Rs 169. The RSI has entered the bullish zone and indicates strong strength in the stock. The price action is backed by the above-average volume. Moreover, the stock has nearly formed a 23-week cup pattern on the weekly timeframe. Breakout from its all-time high level can see the stock claiming 205-220 levels in the medium term as per Fibonacci levels. However, the prior swing high is at Rs 165, and any closing below this point will mean that the stock is getting weak. Hold the stock till it trades above the key level of Rs 165
SHRIRAM TRANSPORT FINANCE COMPANY LTD
CMP: Rs 1,210.00
BSE Code: 511218
Can I buy Shriram Transport Finance Company at the CMP for the long term?
- Sabharish Bhat
WAIT FOR SIGNS OF REVERSAL BEFORE TAKING THE POSITION
The stock made a Head & Shoulders-like pattern at the top, which is a sign of reversal.It is expected to fall about 18 per cent (as per Head & Shoulders pattern), out of which, it had already slipped around 16.5 per cent. The stock looks extremely bearish and has also, broken the crucial support level of Rs 1,200. The RSI is in oversold territory and the ADX indicates that a strong bearish trend will continue. As per the Head & Shoulders, the stock is expected to find its bottom near the level of Rs 1,150. Unless the stock shows any sign of recovery, it is better to avoid catching a falling knife. Wait for signs of reversal and appropriate price action before taking the position.
MISHRA DHATU NIGAM LTD.
CMP: Rs 179.05
BSE Code: 541195
I have entered MIDHANI at Rs 200. What should I do now?
- H K Ramaprasad
HOLD THIS STOCK WITH A STOP-LOSS OF RS 175
The stock of Mishra Dhatu Nigam Ltd (MIDHANI) is currently trading below all the key moving averages. Moreover, on the daily timeframe, the RSI at 37 also indicates the weak strength of the stock. Moreover, the ADX is rising, which indicates the bearish trend of the stock. The increasing negative histogram of MACD adds fuel to the fire. On the weekly timeframe, it has been struggling to get past the 200 level as we observe long wicks on the higher side, which indicates selling pressure. However, the stock has formed a pin bar at the crucial support of 175, indicating buyers’ interest at that level. Thus, the level of 175 happens to be a major support level for the stock as it has bounced back from this level multiple times. Thus, you can hold this stock with a stop-loss of Rs 175. The stock gained a healthy 2 per cent on Wednesday after slipping since several trading sessions. However, this price action is not backed by a rise in volume. Thus, a sell on rise is recommended to cut short your losses as the stock seems to be under pressure for some more time.
INFOSYS LTD.
CMP: Rs 1,856.80
BSE Code: 500209
What is your short-term outlook on Infosys?
- Abhijit Lele
THE STOCK WILL BE EXTREMELY BULLISH ABOVE RS 1,850
Infosys is technically a strong stock as it trades near its all-time high. The stock continues to gain points from the past four weeks. The RSI at 67 indicates the strong strength of the stock. Moreover, the MACD is signalling a bullish crossover on the daily timeframe while the trend indicator ADX (17) is rising and shows decent trend strength. However, we can very well observe long wicks on the upper side of the recent candles, which indicates selling pressure at the top. Infosys will be extremely bullish if it takes out Rs 1,850 level with huge volumes. The stock is technically strong but a breakout from the above-mentioned level will confirm a strong bullish trend that will follow.