Technical Portfolio Guide
INDUSIND BANK LTD.
CMP: Rs957.45
BSE Code:532187
What is your short-term view on IndusInd Bank?
- J. Mahalingam
THE STOCK LOOKS BULLISH FOR THE SHORT-TERM
The stock has given a breakout from its double bottom-like pattern. It found strong support at the level of Rs 840 and closed above its breakout level at Rs 950 on Wednesday. This breakout was supported by the above-average volume, which was greater than the 10-day and 30-day average volume. Along with this, the RSI has also entered bullish territory. The +ve directional movement indicator (DMI) has crossed over its -ve DMI and indicates upside potential for the stock. Moreover, the stock trades above the short-term moving averages. As per the pattern breakout, the stock is expected to rise about 14-15 per cent from the breakout level in the short to medium term. With strong price action in recent times backed by rising volumes, the stock looks bullish for the short term. However, the stock is likely to find a resistance at 1,000-level, which is its 200-DMA. Surging above this level will bring high momentum to the stock. Thus, you can consider your trade accordingly.
MANAPPURAM FINANCE LTD
CMP: Rs157.75
BSE Code:531213
Should I buy Manappuram Finance at CMP for the long-term as the stock has correct- ed lately?
- Manish Dhaka
CONSIDER AVOIDING THE STOCK
The stock has fallen over 25 per cent since its all-time high and is in a strong downtrend. A general trend of lower highs and lower lows has been witnessed on the technical chart. Along with this, the weekly RSI is in the bearish zone. The rising ADX is another concern as it indicates a stronger trend on the downside. The MACD suggests weakness and the stock trades below all the key moving averages on the daily timeframe. The difference between the stock price and its 200-DMA is over negative 5 per cent, which does not show any signs of bullish nature for the long term. Moreover, the stock could not manage to deliver attractive returns in the past but instead, delivered negative returns in the past one year. Thus, it would be a wise decision to avoid this stock and look for better opportunities
LUX INDUSTRIES LTD
CMP: Rs2896.65
BSE Code:539542
I am stuck with Lux Industries at 3,500 levels. What should I do?
- Srimanta Gupta
YOU CAN CONSIDER SQUARING OFF YOUR POSITION AT CMP
The stock has come under a bad impression among investors due to its recent violation of rules entitled by SEBI. With this, it fell about 20 per cent on January 25. Despite such a fall, we see long wicks on the upper side of the following candles, which indicates continuous selling pressure. Even more, no such recovery has taken place, which can bring some hope among the shareholders. The technical parameters have turned bearish too with RSI at 30, indicating weak strength of the stock. The trend indicator ADX is currently at 35, hinting towards a strong downtrend of the stock. In the past week, volumes were on a rise, suggesting panic among the shareholders while selling pressure continues to mount. With the stock showing no signs of recovery, you can consider squaring off your position at CMP.
CCL PRODUCTS (INDIA) LTD.
CMP: Rs499.85
BSE Code:519600
I am holding the shares of CCL Products at Rs 450. Should I book profit?
- Salil Kulkarni
HOLD THE STOCK WITH A STOP-LOSS OF RS 495
The stock of CCL Products is extremely bullish as it surged nearly 14 per cent this week. With this, the stock has hit a fresh all-time high of Rs 514.95. It has also given a breakout from its 27-week long cup-like pattern with a huge volume. The technical parameters point towards extreme bullishness with RSI placed in the super bullish zone. The MACD line is well above the zero line & signal line and is in line with the stock’s bullishness. With the difference lying over 10 per cent between the stock price and 20-DMA, the stock is displaying a bullish momentum. Thus, there’s no such reason to square off your position. Hence, you can keep riding the momentum. However, in case bad sentiments strike the stock, you can consider exiting below Rs 495, which is its breakout level. Taking all these points into consideration, you can hold the stock with a stop-loss at Rs 495.