Technical Portfolio Guide

BHARAT FORGE

CMP: Rs.613.55 BSE Code: 500493

I have purchased shares of Bharat Forge at Rs 660 considering it to be a reversal. What should I do now?
- Chandrakant Patil

HOLD BHARAT FORGE WITH A STOP LOSS OF RS 595

Bharat Forge is currently trading at Rs 613.55. Its 52-week high/low stand at Rs 799.65/Rs 575.15 made on March 1, 2018 and July 20, 2018, respectively, portraying sudden downfall. The stock attempted a bounce-back after hitting a double bottom pattern at 52-week low level. It breached its major resistances at Rs 669 and Rs 675, but retreated from Rs 692 level, i.e. in-between the 50% and 61.8% retracement of the downward rally from Rs 784 to 52-week low. Considering the weekly time frame, the stock is trailing at its 100-period EMA level and also taken support of an upward sloping trendline level. The oscillators are still tilted southwards, and hence, we suggest you to hold with a stop loss of Rs 595.

ESCORTS

CMP: Rs.647.20 BSE Code: 500495

I have suffered a huge loss in Escorts. Can I average now to reduce the losses?
- Sameer Samanta

AVOID ESCORTS FOR NOW AND ENTER ABOVE RS 705 LEVEL

Escorts is currently trading at Rs 647.20. Its 52-week high/low stand at Rs 1018.50/Rs 616 made on May 2, 2018 and September 26, 2017, respectively. The stock witnessed lower tops and slightly similar bottoms after hitting 52-week high. Thereafter, it gave a multiple point upward sloping trendline breakdown at Rs 846 and gave almost continuous downfall with rising volumes where the stock hit below its major support at Rs 645 and Rs 633 levels. The oscillators are in the oversold zone but yet to confirm the reversal. On the weekly time frame also, the stock has breached its 100-period EMA at Rs 691. We suggest you to avoid for now and enter above Rs 705.

HSCL

CMP: Rs.119 BSE Code: 500184

I am holding HSCL at Rs 126, but the stock did not sustain and turned from there. Should I exit?
- Tamilselvan Subbarayan

HOLD HIMADRI SPECIALITY CHEMICALS WITH A STOP LOSS OF RS 109

HSCL is currently trading at Rs 119. Its 52-week high/low stand at Rs 197/109.50 made on January 15, 2018 and June 6, 2018, respectively. The stock formed a reversal Doji at 52-week high, and thereby fell, making lower tops and lower bottoms till 52-week low. The stock attempted to break the trend but faced resistance yet again near Rs 155 level and has fallen gradually till Rs 111.60 on September 25, which is a trendline support level. The stock bounced back on September 26 with reasonable volumes and 14-period RSI positive crossover. We may see some more upside in the coming sessions and hence we suggest you to hold and exit below Rs 109 which is its next support.

JK PAPER

CMP: Rs.155.25 BSE Code: 532162

I have entered JK Paper after it hit above Rs 170 which was its previous high, but the stock is giving sharp and volatile moves. What to do?
- Thomas

HOLD JK PAPER FOR NOW, CAN GIVE A BOUNCE IN THE MEDIUM TERM

JK Paper is currently trading at Rs 155.25. Its 52-week high/low stand at Rs 193.95/Rs 97.85 made on August 21, 2018 and July 19, 2018 respectively, posting a dynamic move in just a month, where the stock breached its previous record high of Rs 169.90 reached on January 5, 2018. Meanwhile, the stock also gave downward sloping trendline breakout at Rs 143.50. After hitting its new 52-week/all-time high, the stock witnessed sharp zig-zag moves from near Rs 190 to Rs 150- 155 levels, which is near the 38.2% retracement of the prior rally from 52-week low to high. On the weekly time frame, we are seeing pennant pattern in the making. We suggest you to hold for now.

ADANI ENTERPRISES

CMP: Rs.141.95 BSE Code: 512599

Can I buy Adani Enterprises as it has fallen a lot?
- Asgar Ali Bohra

AVOID ADANI ENTERPRISES FOR NOW, ENTER ON CLOSE ABOVE RS 156

Adani Enterprises is currently trading at Rs 141.95. Its unadjusted 52-week high/low stand at Rs 236.70/Rs 101.05 made on August 29, 2018 and July 2, 2018, respectively, showing sudden upsurge. However, the stock could not sustain and fell more than 80% of the prior sharp upward move. Meanwhile, it also breached its 100-day and 200- day EMA supports. Recently, the volumes are reasonable and the oscillators are lying in the oversold zone. The stock formed a hammer on September 25. Below the current low of Rs 125.65, the stock has a multiple support zone near Rs 104 level. We suggest you to avoid for now.

HINDALCO

CMP: Rs.243.05 BSE Code: 500440

I had bought Hindalco when it started its downturn. Can I average now?
- Meenal Sagorkar

ENTER HINDALCO INDUSTRIES FOR AVERAGING AT CMP

Hindalco is currently trading at Rs 243.05. Its 52-week high/low stand at Rs 283.95/Rs 192.50 made on January 5, 2018 and July 23, 2018 respectively. The stock has bounced back in August and September. Considering the daily time frame, after hitting 52-week low, the stock gave a reversal Doji and thereby witnessed higher tops and higher bottoms. With this, the stock gave a downward sloping trendline breakout at Rs 244, followed by a pullback of up to 38.2% retracement of the prior upward rally, which was also its 100-day and 200-day EMA supports. The stock has bounced back and retested the trendline with rising volumes and the 14-period RSI quoting at 61, suggesting momentum.


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.