Technical Portfolio Guide
TATA CONSULTANCY SERVICES LTD.
CMP: Rs3309.00
BSE Code: 532540
Is TCS a good value-buy at this level?
- Jaipal Singh Rathore
YOU CAN ACCUMULATE THE STOCK IN SMALL QUANTITIES
The stock corrected 25 per cent from its January high. It also retraced 38.2 per cent of the 2020-21 rallies and took support for the last two weeks. It is currently below 50-DMA, 100-DMA and 200-DMA. The stock is about 3 per cent below the 50-DMA and about 8 per cent below its 200-DMA. It broke the long upward channel in April and formed lower tops & lower bottoms. The stock is bouncing from the oversold zone but must form a higher top for the medium-term upside. Technically, it is weak on a medium term. Fundamentally, it has an operating revenue of Rs 1,91,754.00 crore on a trailing 12-month basis. The annual revenue growth of 17 per cent is outstanding and a pre-tax margin of 27 per cent is great while RoE of 42 per cent is exceptional. The company is debt-free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. For a long-term, at least 2-3 years perspective, accumulate this stock in small quantities.
OIL INDIA LTD.
CMP: Rs236.65
BSE Code:533106
I have the shares of Oil India at Rs 290. What is its outlook for the medium-term?
- Singh Kochar
MAINTAIN A STOP-LOSS AT RS 225
You entered near the lifetime high three weeks ago. For the last two weeks, the stock has been declining sharply with above-average volume. Currently, it has bounced from its support level. It registered a failed breakout and sustained below the 20-DMA and took support at the 200-DMA for the past four days. The relative strength is declining. The weekly MACD is about to give a bearish signal while the weekly RSI is at 50. It is better to maintain a stop-loss at 200-DMA level of Rs 225 on a closing basis. Otherwise, use bounces to exit the stock partially.
REC LTD
CMP: Rs116.95
BSE Code:532955
Should I invest in high dividend stocks like REC for the long term?
- Rajkumar Kasinathan
CONSIDER INVESTING IN A SIP MANNER
In the current bear market conditions, most of the fund houses follow the high dividend portfolio strategy to maintain the annual returns. When you are approaching the market with a dividend yield strategy, you are preferring to stick to the stock for at least a year. If you have the patience to wait for over a year, you can accumulate the high dividend yield stocks in trenches or like SIP. However, do not forget about watching the fundamental changes, if any. Technically, the stock is in a downtrend. The 50-DMA may act as resistance at Rs 120.
BHARAT ELECTRONICS LTD
CMP: Rs226.85
BSE Code:500049
I am holding the shares of BEL for Rs 215. Should I book profit?
- Prakash Karnani
HOLD THE STOCK WITH A TRAILING STOP-LOSS
The stock has been consolidating for the last eight weeks. It made a lower top two weeks ago. The prior swing low is at around Rs 216 while the 200-DMA is at Rs 215. The company has received a fresh order from the Indian Army to procure a mountain variant of ‘Weapon Locating Radar’ amounting to over Rs 400 crore. The defence sector stocks are looking strong in the current market. The stock meets the CANSLIM characteristics of investing. The stock has an EPS rank of 81, which is a good score, indicating consistency in earnings. The RS rating of 71, which is fair, indicates the recent price performance. Besides, buyer demand at A+, which is evident from the recent demand for the stock and group rank of seven indicates that it belongs to a strong industry group of aerospace/defence. The master score of B is close to being the best. Hold the stock with a trailing stop-loss. Remember, the profit position should not go into a loss.