Technical Portfolio Guide

NATCO PHARMA

CMP: Rs.824.25 BSE Code: 524816

I am holding Natco Pharma at 870. Should I keep holding the same or exit? 
- Ajay

HOLD NATCO PHARMA FOR NOW

Natco Parma is currently trading at Rs 824.25. Its 52-week high/low stand at Rs 1061.95/Rs 698.85 made on December 15, 2017 and March 7, 2018, respectively. Considering the daily time frame, the stock failed to break the multiple resistance at Rs 1050 level and reversed in January 2018 from Rs 1047 level for a sharp fall of up to the 52-week low level. Since then, the stock is trading in an ascending triangle pattern with horizontal line placed at Rs 845 level. On September 11, the stock has broken its 200-day EMA level and is heading for Rs 845 with a volume spurt. We suggest you to Hold the stock for now.

UFLEX

CMP: Rs.311.35 BSE Code: 500148

I had bought Uflex at Rs 335, but it did not cross this level anytime after August 23. What to do now? - Shashank

HOLD UFLEX WITH A STOP LOSS OF RS 290

Uflex is currently trading at Rs 311.35. Its 52-week high/low stand at Rs 506.75/Rs 245.20 made on December 26, 2017 and June 28, 2018, respectively. Considering the daily time frame, the stock witnessed lower tops and lower bottoms in the six months from the 52-week high to 52-week low. Thereafter, the stock formed a rounding bottom pattern and attempted a multiple resistance breakout at Rs 335 on August 23, but it failed on a closing basis and corrected near to its 38.2% retracement of the prior upward rally. The stock is attempting a bounce-back and has crossed the 100-day EMA resistance level, but it is still below the 200-day EMA at Rs 330. Hence, we suggest you to hold, but exit below Rs 290.

ICICI PRU

CMP: Rs.363.55 BSE Code: 540133

Can I enter ICICI Prudential at CMP? 
- Nischint Somani

AVOID ICICI PRUDENTIAL LIFE INSURANCE, ENTER ABOVE RS 385 ON CLOSING BASIS

ICICI Prudential is currently trading at Rs 363.55. Its 52-week high/low stand at Rs 462/347.25 made on May 11, 2018 and July 19, 2018 respectively, showing sudden downfall in nearly two months. After the fall from 52-week high to 52-week low, the stock gave a sharp rise of up to its multiple resistance zone of Rs 425-430. The stock could not breach the zone and retreated sharply up to Rs 358 level on September 5, where it formed a reversal Doji. However, the stock has not given any significant upside and lacks momentum as the volumes are very low and oscillators are lying below 50 and are tilted southwards. We suggest you to avoid for now and enter above Rs 385 on a closing basis for minor returns.

BATA INDIA

CMP: Rs.1036.90 BSE Code: 500043

I am holding Bata India bought at Rs 870. What should be my next action? 
- John Jacob

BOOK PROFITS IN BATA INDIA IF IT FALLS BELOW RS 1016

Bata India is currently trading at Rs 1036.90. Its 52-week high/low stand at Rs 1116/Rs 656.80 made on August 29, 2018 and February 6, 2018, respectively, portraying a sharp rise. The stock is rising since December 2016, with few hiccups in-between. Considering the weekly time frame, the stock surged for seven consecutive weeks from the July 20 week. The stock formed a reversal Doji in the August 31 week and gave confirmation next week. The stock has hit just above Rs 1016 level twice in the previous and current weeks. The 14-period RSI too witnessed a negative crossover in the overbought zone. We suggest you to book profits if goes below Rs 1016.

INDIAN TERRAIN FASHION

CMP: Rs.132.75 BSE Code: 533329

Bought 50 shares of Indian Terrain Fashion @ Rs 261.50 
- Deepak Kar

AVERAGE INDIAN TERRAIN FASHIONS ABOVE RS 140 OR EXIT BELOW RS 125

Indian Terrain is currently trading at Rs 132.75. Its 52-week high/low stand at Rs 252.55/Rs 125.30 made on October 10, 2017 and August 31, 2018, respectively. From January 11 to August 14, the stock has been trading with lower tops and lower bottoms. Thereafter, the stock is seen trading in a range pattern of Rs 125 to Rs 140 at the lower levels till date. The poor volumes and oscillators lying below 50 depict lack of momentum in the stock. Further, the stock is trading much below its important EMAs of 100-day and 200-day. We suggest you to average the stock if it crosses Rs 140 for around 12-15 points upside and keep on repeating at every bounce, but exit if the stock falls below Rs 125.

KAKATIYA CEMENT

CMP: Rs.224.35 BSE Code: 500234

I am holding 25 shares of Kakatiya Cement bought @ Rs 398 
- Deepak Kar

EXIT KAKATIYA CEMENT SUGAR & INDUSTRIES BELOW RS 217

Kakatiya Cement is currently trading at Rs 223.00. Its 52-week high/low stand at Rs 432.50/Rs 217.35 made on December 22, 2017 and March 26, 2018, respectively. The stock had formed a symmetric triangle with a breakdown at Rs 383 level on January 24. Meanwhile, the stock also breached its 100-day and 200-day EMA supports. Thereby, it fell sharply up to its 52-week low level. The stock bounced back, but resisted yet again at 61.8% retracement of the prior downward rally from Rs 425 to 52-week low. Since then, the stock is trading with gradual lower tops and similar bottoms around Rs 220-221. We suggest you to exit below Rs 217.

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.