Technical Portfolio Guide
INDRAPRASTHA GAS LTD.
CMP: ₹341.30
BSE Code:532514
What is the long-term view for IGL?
- Muthusankar Viswanathan
AVOID PURCHASING THIS STOCK
The stock declined about 45 per cent from its all-time high. It is consolidating for the last 13 weeks. The price pattern looks like a bearish pennant. It failed to sustain above the 23.6 per cent retracement level of the prior downtrend. For the last two weeks, it’s hovering around the pennant support line. It is trading below all the key moving averages. It is about 5 per cent below the 20-DMA and 7 per cent below the 50-DMA. The 200, 50, and 20-DMAs are in a downtrend. The weekly RSI is in the bearish zone while the MACD is also below the zero line. For an upside reversal, it needs to sustain above Rs 402 for at least two weeks. However, a close below the zone of Rs 335-Rs 340 will lead to the resumption of a downtrend. The downside targets are Rs 261 and Rs 228. Currently, avoid purchasing this stock in any timeframe.
ADANI GREEN ENERGY LTD.
CMP: ₹1,709.80
BSE Code:541450
Is it a good time to buy the shares of Adani Green for the medium-term?
- Balaji Manavalan
A DECLINE BELOW RS 1,680 WILL BE BEARISH
The stock gave up all the gains made from the consolidation breakout in the early months of 2022. It slipped 44 per cent from its lifetime high. The RSI and MACD are in the oversold zone. It has been trading in a tight range for the past nine days but has plunged below its lower limit of Thursday. There is a hidden divergence in RSI. The MACD line is also about to move above the signal line. The Elder impulse system has formed neutral bars. The KST and TSI indicators are also about to give a bullish signal. However, the price has to move at least above the zone of Rs 1,840 for the short term. For the medium-term, it has to protect the recent low of Rs 1,680. At the same time, a good entry point for the medium term will only be above Rs 2,021. In any case, a decline below Rs 1,680 will be a disaster for the stock.
ADITYA BIRLA FASHION AND RETAIL LTD.
CMP: ₹228.80
BSE Code:535755
I am holding the shares of Aditya Birla Fashion & Retail at an average of Rs 250. What should I do?
- Dadaso Lohar
EXIT THE STOCK AT CMP
The stock broke the multiple parallel support. Technically, it is one of the weakest stocks that entered into a bearish phase. The price has made a fresh low. The price pattern looks like a triple top, which broke with a volume. The stock is trading below all the key moving averages. The 20-DMA declined below the 200-DMA, which is a death cross and is a signal for long-term bearishness. The relative price strength is very poor. The MACD and RSI are in the strong bearish zone on a weekly chart. It is better to exit the stock with the current loss. Otherwise, you will lose more.
HINDUSTAN AERONAUTICS LTD.
CMP: ₹1,796.70
BSE Code:541154
I have the shares of HAL bought at Rs 1,750. What is its medium-term target?
- Nilay Kumar Nandy
HOLD THE STOCK AS PER YOUR RISK APPETITE
The stock witnessed a major profit booking at a near-lifetime high owing to bad market sentiment. Volumes have been recorded above average for the past three weeks. After breaking out of an inverted head & shoulders pattern, it retested the neckline and bounced sharply higher in a bear market condition. It formed higher high and higher low bars on the weekly chart. The stock is currently trading 5 per cent above the 50-DMA and 25 per cent above the 200-DMA. Since March 2020, the stock is consistently making higher lows and moving in a clear staircase model. The weekly ADX (34.67) shows solid strength in the trend. The MACD shows a strong bullish momentum. As it formed a Dragonfly Doji and got confirmation this week, it has retraced to some extent. Hold the stock as per your risk appetite. This is one of the most defensive stocks in the current bear market.