Technical Portfolio Guide
MULTI COMMODITY EXCHANGE OF INDIA LTD.
CMP: ₹ 1403.35
BSE Code:534091
I had bought the shares of MCX at around Rs 1,600. What should I do as the stock is falling?
- Sucharita Pradhan
EXIT THE STOCK AT CMP
The stock was in a strong downtrend and had fallen nearly 35 per cent since its prior swing high before recovering a little. Despite the recovery, the stock does not show any bullishness. In the past three days, it has fallen nearly 5 per cent and recorded above-average volumes. This indicates a strong sell-off and the stock has also plunged below its 20-DMA. The RSI has slipped below 50 and points downward. Moreover, the MACD has signalled a bearish crossover while other momentum oscillators indicate a neutral to bearish view. Considering its weak price structure, the stock is expected to trade lower in the coming days, and it would be a wise decision to exit the stock at CMP.
STATE BANK OF INDIA
CMP : ₹517.50
BSE Code:500112
I have bought SBI shares at Rs 490. Should I book profit?
- Rajender Ratti
HOLD THE STOCK WITH A STOP-LOSS OF RS 510
The level of Rs 490 has been a strong buying zone and the stock rallied since then. On the weekly chart, the stock has formed a bullish candle with a lower shadow, indicating strong buying interest at lower levels. Moreover, the stock has gained for the third consecutive week and is thus, above all the key short-term as well as the long-term moving averages. Overall, the price structure of the stock is strong and bullish. The technical parameters indicate bullishness too as the 14-period daily RSI is placed in a bullish territory while its on-balance volume (OBV) also shows strength from the vol- ume’s perspective. Thus, you can consider holding the stock as it shows no weakness. However, maintain a stop-loss at Rs 510 as this level happens to be good support. Any fall below this level can induce weakness in the stock.
COROMANDEL INTERNATIONAL LTD.
CMP: ₹ 840.20
BSE Code:506395
I wish to add more shares of Coromandel International to my portfolio. What is the best buying level?
- Ashish Singla
CONSIDER BUYING ABOVE RS 860
The stock is trading with huge volatility and is swinging in both directions. After hitting a prior swing high of Rs 867.85, the stock had plunged about 10 per cent before recovering a little. However, the resistance at the level of Rs 850 has proved a tough one to crack as it was unable to crack past it in the last three days. The technical indicators show a neutral to bullish view. However, a rise above the level of Rs 860 will make the stock bullish. This level happens to be the breakout level of the falling trendline, following which, the stock has seen a good upside. Also, keep an eye on the volume as a rise in volume shall confirm the breakout, and you can expect good appreciation in the coming days.
DISH TV INDIA LTD.
CMP: ₹ 17.60
BSE Code:532839
I have bought the shares of Dish TV at Rs 18.50. What should I do?
- Manish Kumar
HOLD THE STOCK WITH A STOP-LOSS OF RS 16.50 ON A CLOSING BASIS
The stock has faced strong resistance at higher levels. It had tested the zone of Rs 18.50-Rs 19 multiple times but failed as it plunged about 10 per cent after that. However, strong buying was seen on Wednesday, as the stock made a sharp recov- ery from lower levels to close above Rs 17.50. The stock is likely to trade sideways with huge volatility as indicated by the technical parameters. However, it trades above all the key moving averages while OBV indicates good strength in the stock. Thus, you can consider holding the stock with a stop-loss of Rs 16.50 on a closing basis.