Technical Portfolio Guide

RELIANCE CAPITAL

CMP: Rs.418.10 BSE Code: 500111

I have bought shares of Reliance Capital at Rs 425 at the start of May, but the stock is not moving up. What to do?
- Manoj Patil

HOLD RELIANCE CAPITAL WITH A STOP LOSS OF RS 329

Reliance Capital is currently trading at Rs 418.10. Its 52-week high/low stand at Rs 797.04/Rs 364.10 made on September 1, 2017 and May 16, 2018, respectively. The stock had a multiple support zone at Rs 395-400 levels. Meanwhile, the stock had also been making lower tops with similar bottoms, forming a kind of descending triangle pattern. The stock gave a breakout at Rs 426 on March 28, but could not sustain beyond Rs 461. The stock retreated gradually and breached the the levels of Rs 395-400 to hit Rs 363. Recently, the stock has formed a small rounding bottom-like pattern and broke its first resistance at Rs 426.70. Therefore, we suggest a Hold for now.

MERCK

CMP: Rs.2338.70 BSE Code: 500126

I am holding Merck bought at Rs 2055 for the short term. What should I do now?
- Yogesh Kumar

BOOK PROFIT IN MERCK

Merck is currently trading at Rs 2338.70. Its 52-week high/low stand at Rs 2405.50/Rs 977 made on May 30, 2018 and July 3, 2017, respectively, which shows an uptrend and the stock trailing at all-time high levels. The stock holds a tendency to give gradual correction after long green weekly candles, which is formed in the current week. Considering the weekly time frame, the stock had corrected for three consecutive weeks up to 50% retracement of prior upward rally and witnessed a bounce-back in the current week. The bounce is supported by volume spurt and the 14-period RSI positive crossover, but in the overbought zone. We suggest you to book profit.

EROS MEDIA

CMP: Rs.149.40 BSE Code: 533261

I have purchased shares of Eros at Rs 220 but it has fallen a lot now. What to do now?
- John Ravi

AVERAGE EROS INTERNATIONAL MEDIA AT THE CURRENT LEVELS

Eros is currently trading at Rs 149.40. Its 52-week high/low stand at Rs 259.85/118.50 made on January 12, 2018 and May 22, 2018, respectively, which suggests a sudden downfall in the stock. Considering the weekly time frame, the stock was trading within the range of Rs 150-265 since December 2015. Recently, the stock fell below Rs 150 level and hit Rs 118.50 level with almost a consistent fall from Rs 260 levels. The stock has formed a hammer-like pattern last week with confirmation in the current week. The reversal pattern is supported by huge volumes and the 14-period RSI positive crossover just above the oversold zone. We suggest you to average.

INFO EDGE (INDIA)

CMP: Rs.1253 BSE Code: 532777

Can I buy Info Edge at the current levels?
- Leelakumarrr philander

BUY INFO EDGE (INDIA) AT CMP UP TO RS 1250

Naukri is currently trading at Rs 1253. Its 52-week high/low stand at Rs 1457.50/Rs 876.80 made on January 22, 2018 and May 30, 2017, respectively. The stock holds multiple supports at Rs 1135-1150 levels. Recently, after taking support at the said levels on May 25, the stock surged for three consecutive days supported by volume spurt and the 14-period RSI breaching its multiple resistance at 55. On May 30, the stock also gave a downward sloping trendline breakout at Rs 1250. The stock may continue to surge or witness a pullback before further rally. Thereby, we suggest a Buy in the stock at CMP up to Rs 1250 on the downside.

SPARC

CMP: Rs.406 BSE Code: 532872

SPARC looks promising for now. Can I enter the scrip now?
- Mukesh Kuamr

BUY SUN PHARMA ADVANCED RESEARCH AT CURRENT LEVELS

SPARC is currently trading at Rs 406. Its 52-week high/low stand at Rs 532.40/Rs 273 made on January 12, 2018 and May 30, 2017, respectively. Considering the daily time frame, the stock just gave a downward sloping trendline breakout at Rs 403 on May 30. Considering the weekly time frame, the stock had given a multiple resistance breakout at Rs 415, hit Rs 532, which was near to its all-time high level on closing basis, followed by strong pull-back up to Rs 344. The current week witnessed a sharp bounce-back after four consecutive weekly downbeats. The bounce is supported by rising volumes and RSI positive crossover. We suggest a Buy.

UNICHEM LABS

CMP: Rs.253.20 BSE Code: 506690

I have bought Unichem Labs at Rs 290 level. What should be my next action?
- Vijaybhai

EXIT IN UNICHEM LABORATORIES AT CMP OR WAIT FOR RS 230-240 FOR A BOUNCE

Unichem Laboratories is currently trading at Rs 253.20. Its 52-week high/low stand at Rs 382/Rs 234.10 made on January 8, 2018 and August 11, 2017, respectively. Considering the daily time frame, the stock hit double top at Rs 380-382 and plunged sharply up to Rs 258-260 levels. The stock attempted a bounce-back, but resisted just below the 50-day EMA levels and hit Rs 259-260 multiple times. Recently, the stock breached the levels. Considering the broader view, the stock is trading in an upward sloping channel which has a support at Rs 230-240 levels where the stock may witness a bounce. Risk averse may exit at the current levels while others can wait till Rs 230 for support.