Technical Portfolio Guide

IRB

CMP: Rs.177.90 BSE Code: 532947

Can I enter IRB at the moment?
- Deepak Prajapati

AVOID IRB INFRASTRUCTURE DEVELOPERS FOR NOW

IRB is currently trading at Rs 177.90. Its 52-week high/low stand at Rs 286/Rs 166.25 made on April 30, 2018 and September 5, 2018, respectively. The stock was trading in a horizontal channel pattern range of Rs 180-200 to Rs 270-290 since July 18 week. The stock witnessed a breakdown on July 20, 2018 week, then consolidated for six consecutive weeks, followed by yet another breakdown in the current week. Considering the daily time frame, the stock had breached its head & shoulders pattern built within the channel with target ranging Rs 163 to Rs 150. Accordingly, the stock tumbled up to Rs 166 and bounced back from the oversold zone with volume spurt on September 5. However, in case it is a mere short-covering, the stock may fall further. We suggest avoid for now.

GUFIC BIOSCIENCES

CMP: Rs.132.15 BSE Code: 509079

Can I average Gufic Bio at CMP?
- Ashwin

ENTER GUFIC BIOSCIENCES AT CMP

Gufic Biosciences is currently trading at Rs 132.15. Its 52-week high/low stand at Rs 164.35/Rs 68 made on May 9, 2018 and September 5, 2017, respectively, showing an uptrend. Considering the daily time frame, the stock formed a shooting star pattern at the 52-week or all-time high level and tumbled up to Rs 112 level, which was its 200-day EMA level. Since then, the stock witnessed range-bound movement. The stock has inverse head & shoulders pattern on the making with a breakout around Rs 138 level. On September 5, the stock witnessed a consolidation breakout with a strong bullish candle with rising volumes and the 14-period RSI positive crossover at 56 level, suggesting an upside momentum. Hence, to pre-empt a breakout, we suggest you to enter at the current levels.

CADILA HEALTHCARE

CMP: Rs.422.55 BSE Code: 532321

I had bought shares of Cadila at Rs 420. What should be my next action?
- Rajesh Raut

HOLD CADILA HEALTHCARE WITH A STOP LOSS BELOW RS 384

Cadila Healthcare is currently trading at Rs 422.55. Its 52-week high/low stand at Rs 519.90/332.85 made on September 7, 2017 and August 16, 2018, respectively. Considering the daily time frame, the stock formed a long black candle at its all-time high of Rs 560 on July 10, 2017 and witnessed a fall. Meanwhile, the stock formed a head & shoulders pattern with multiple shoulders and finally gave a breakdown at Rs 452 level on November 15, 2017. Thereafter, the stock traded with gradual lower tops and lower bottoms. In the recent rally from its 52-week low level, the stock broke out of the downward sloping trendline formed by joining the lower tops with huge rise in volumes and oscillators above 55. The stock is also trailing above its 200-day EMA level. We suggest you to hold the stock for now.

VOLTAMP TRANSFORMERS

CMP: Rs.908.70 BSE Code: 532757

I bought Voltamp Transformers at Rs 956 considering it to be a reversal. What should I do now?
- Nilesh Bhuskute

EXIT VOLTAMP TRANSFORMERS AT CMP OR RISK TAKERS BELOW RS 870

Voltamp Transformers is currently trading at Rs 908.35. Its 52-week high/low stand at Rs 1280/Rs 870 made on April 23,2018 and July 24, 2018, respectively, which shows a sharp downside. The stock had attempted a multiple resistance breakout at 52-week high levels of Rs 1235-1245, but failed on a closing basis forming a shooting star-like pattern and, thereby, the stock tumbled sharply up to 52-week low. The stock attempted a bounce of up to Rs 1005 but retreated giving four consecutive weekly downbeats. Currently, the volumes support falling prices and oscillators are inclined southwards, which do not suggest a reversal for now. We suggest you to exit below Rs 870.

MANAPPURAM FINANCE

CMP: Rs.96.45 BSE Code: 531213

I had bought Manappuram Finance at Rs 102 level, but the stock fell sharply and I could not exit. What to do now?
- Anil

WAIT FOR A BOUNCE, BUT EXIT MANAPPURAM FINANCE BELOW RS 95

Manappuram is currently trading at Rs 96.45. Its 52-week high/low stand at Rs 130.45/Rs 92.30 made on May 9, 2018 and November 8, 2017, respectively. The stock gave a sharp fall from its 52-week high up to Rs 96 level on June 28. Thereafter, the stock formed a kind of symmetric triangle pattern and gave a breakout at Rs 107.70 and surged up to Rs 114.80, but it witnessed a sharp reversal breaching its lower trendline of the triangle. Meanwhile, the stock also breached its 200-day EMA. Considering the weekly time frame, the stock is trailing at its multiple support zone of Rs 92-96. We suggest you to exit below Rs 95 level or wait for a bounce.

CENTRAL BANK

CMP: Rs.67.80 BSE Code: 532885

I have been holding Central Bank for long and the stock is not moving. What should I do?
- Vinay Mestry

EXIT CENTRAL BANK BELOW RS 66

Central Bank is currently trading at Rs 67.80. Its 52-week high/low stand at Rs 103.80/Rs 62 made on September 12, 2017 and May 18, 2018, respectively. Considering the daily time frame, the stock is trading in a downward sloping channel pattern since July 2017. In the recent wave from Rs 62 to Rs 84.45, the stock could not breach the pattern on the upside and tumbled sharply up to Rs 66.35 level. The stock is consolidating at lower levels since end of June 2018 with lack of volumes and oscillators tilted southwards. The stock has no reversal for now, but in case of a bounce, it can turn positive only above Rs 71.50. We suggest you to exit below Rs 66.

Disclaimer: 1) Some of the companies covered in this section do not have good volumes on the bourses. Technical analysis works much better in cases where volumes on the stock are high. Investors please take note of the same. 2) Recommendations in this section are purely based on Technical Analysis. FNIW may or may not look at the Fundamental Strength of the recommended stocks.