Technical Portfolio Guide

WINDSOR MACHINES LTD

CMP: ₹45.30
BSE Code : 522029

What is the buying level for Windsor Machines for the short term?
- Satpal Kaur

ACCUMULATE BETWEEN THE ZONE OF RS 47 AND RS 49
The stock is trading near the prior pivot level. After declining 95 per cent from its lifetime high, the stock consolidated for a considerable time. Currently, it is into Stage-2 transition, which is the beginning of the long term uptrend. The 50-DMA is working as support now but earlier, it was resistance. It is 29.78 per cent above the 200-DMA and 8.43 per cent above the 20-DMA. The 30 and 40-week averages are acting as support now. Importantly, it is moving in a staircase manner, which is a sign of an uptrend. It also closed above the 23.6 per cent level of the prior downtrend. The weekly MACD has just given a bullish signal. The RSI is in a strong bullish zone. The ADX (27.77) shows a solid strength in the trend. The Elder impulse system has formed a strong bullish trend in the current week. The KST and TSI indicators have given fresh bullish signals. In short, the stock is in an uptrend. It can be accumulated between the zone of Rs 47 and Rs 49 with a stop-loss of Rs 41. Besides, the short-term target is Rs 63

LARSEN & TOUBRO INFOTECH LTD.

CMP: ₹5077.70
BSE Code:540005 

I have LTI shares that I purchased at Rs 6,000. What should I do?
- Mohan Kumar

EXIT IN A PULLBACK TOWARDS THE LEVEL OF RS 5,550
During the last nine trading sessions, the stock declined by over 20 per cent. It broke the 55-day counter-trend consol- idation. We think that you entered at the time of this consolidation phase. The 200-DMA, which acted as support ini- tially, was breached in a sharp sell-off. Currently, it’s 14.09 per cent below the 20-DMA. It took support at 61.8 per cent retracement level on Wednesday. It may take some tests here before further fall. The stock broke the double top pattern even before the consolidation breakdown. As the stock closed below the prior swing low, it is better to avoid going long or averaging the existing positions. Because of the sharp fall, a pullback is possible in the next few days as long as it holds the Rs 5,090 support. Below this level, it can test Rs 4,400 sooner or later. Regarding your position, it is better to exit in a pullback towards Rs 5,550.

BHARAT ELECTRONICS LTD.

CMP : ₹252.50
BSE Code : 500049 

I bought the shares of BEL at Rs 227. Should I book profit?
- Tarun Bhatnagar

MAINTAIN A STOP-LOSS AT BUYING PRICE WITH TARGET AT RS 324
The stock has broken out of a 20-week consolidation with a massive volume and is sus-taining the breakout for the second consecutive week. The stock is comfortably placed above its key moving averages i.e. around 17 per cent & 23 per cent from 50-DMA and 200-DMA. It is trading 19.78 per cent above the 20-weekly moving average. The MACD is above the signal line while the histogram shows a strong momentum. The 14-period RSI (72.73) is in a strong bullish zone and at its 20-week high. The accumulation/distribution (AD) line is at a new high thereby, showing the stock's demand. It is above the Ichimoku cloud and shows a strong bullish bias in the stock. The ADX (21.22) began to trend up and the +DMI is above the -DMI, which is a positive signal. The consensus price target estimate for the short- term is Rs 290. Maintain a stop-loss at your buy price. Meanwhile, the medium-term target is placed at Rs 324.

LARSEN & TOUBRO LTD.

CMP : ₹1714.95
BSE Code : 500510

Larsen & Toubro has corrected significantly from higher levels. Is it the right time to accumulate this stock?
- Vipul Mangukiya

AVOID THE STOCK FOR NOW
The stock corrected about 18 per cent from its lifetime high. It closed below the 23.6 per cent retracement level of the uptrend from March lows. The stock has formed a lower low and a lower high, which is an indication of the beginning of the downtrend. It is better to avoid accumulating as long as it trades below the prior high. It is trading below the key moving averages. Its price relative strength is very poor, compared to the broader market. The volume is decelerating. The weekly MACD line declined below the zero line and the RSI is at a prior low. The TSI and KST indicators show solid bearish signs. It is better to avoid this stock with the above technical parameters.