Technical Portfolio Guide
NATCO PHARMA
CMP: Rs. 720.45 BSE Code:524816
I am holding Natco bought at Rs 740 considering it to be a support, but the stock fell after that. What to do now?
- Premchand Bhandari
HOLD NATCO PHARMA WITH A STOP LOSS OF RS 678
Natco Pharma is currently trading at Rs 720.45. Its 52-week high/low stand at Rs 1061.95/Rs 637.40 made on December 15, 2017 and October 9, 2018, respectively. The stock gave an ascending triangle pattern breakdown on September 27 at Rs 766 and thereby witnessed a consistent fall of up to its 52-week low levels. The stock hit a hammer-like pattern and thereby witnessed reversal, where we can see a V-pattern in the making. In case the stock hits above Rs 760-770 levels on a closing basis, we may see the stock rallying upwards. Otherwise, it would retreat again after a pullback either from the current levels or after testing the lower trendline. We suggest you to hold with a stop loss of Rs 678
FUTURE RETAIL
CMP: Rs. 500.70 BSE Code:540064
I am holding Future Retail bought at Rs 485, considering it to be a reversal. What to do now?
- Bhasker Pandey
HOLD FUTURE RETAIL WITH A STOP LOSS OF RS 450
Future Retail is currently trading at Rs 500.70. Its 52-week high/low stand at Rs 639.54/ Rs 423.40 made on November 27, 2017 and October 8, 2018, respectively. The stock broke its multiple support zone of Rs 450-470 and tumbled up to the 52-week low where it consolidated for eight consecutive days. On October 16, the stock gave a breakout of consolidation and surged in-between 50% to 61.8% retracement of the prior downward move from Rs 593 to the 52-week low. This was supported by 14-period RSI bounce-back from the oversold zone and volume spurt. Hence, we suggest you to hold with a stop loss of Rs 45
PTC
CMP: Rs. 75.95 BSE Code:532524
Can I buy shares of PTC as it has moved up from 52-week low?
- Damera Venkata Rao
AVOID FOR NOW AND ENTER ON CLOSE ABOVE RS 80.50-81.50
PTC India is currently trading at Rs 75.95. Its 52-week high/low stand at Rs 128.30/64.60 made on November 2, 2017 and October 8, 2018 respectively. The stock is trading in a downward sloping channel pattern since January 2018. The stock resisted at its main trendline at Rs 88 on a closing basis and thereby witnessed a downslide below its prior support at Rs 67.80 and made a new 52-week low. The stock gave a Doji at 52-week low and thereby witnessed reversal. However, the stock is still trailing in-between the channel. We suggest you to avoid for now and enter at Rs 80.50-81.50, which is a channel pattern breakout and 100-day EMA resistance breakout.
NTPC
CMP: Rs. 162.75 BSE Code:532555
I have purchased NTPC at Rs 175 level. Shall I hold or exit?
- Vaibhav Kishore
HOLD NTPC WITH A STOP LOSS OF RS 159
NTPC is currently trading at Rs 162.75. Its 52-week high/low stand at Rs 187.95/Rs 149.45 made on October 27, 2017 and June 28, 2018 respectively. The stock had given an upward sloping channel pattern breakdown on May 4 at Rs 175 and tumbled up to Rs 149.50-150.50, where it witnessed a triple bottom. The stock surged, but it could not break its prior resistance at Rs 180 and retreated again to trade at 61.8% retracement of the prior downward rally from Rs 180 to Rs 149.50. Meanwhile, the stock also took support of 100-day EMA level. However, volumes and oscillators do not support momentum for now. Hence, we suggest you to exit below Rs 159 level.
BOI
CMP: Rs. 76.70 BSE Code:532149
I averaged BOI at Rs 84 at the start of the month, but the stock turned back. Should I exit?
- Prabhat Sharma
EXIT BANK OF INDIA BELOW RS 73
Bank of India is currently trading at Rs 76.70. Its 52-week high/low stand at Rs 216.70/Rs 73.55 made on November 17, 2017 and October 1, 2018 respectively. The stock had resisted twice at its 100-day EMA level, where it hit a kind of double top on July 31 and September 3. Thereafter, the stock gave a continuous fall of up to the 52-week low level. The stock is trailing at its 52-week or multi-year low levels. The stock has hardly moved after that. The volumes are justifiable and the 14-period RSI is quoting below 50. We suggest you to exit below Rs 73 level.
IOC
CMP: Rs. 132.30 BSE Code:530965
I am holding IOC bought at Rs 150, which was its support zone, but the stock reversed sharply. What to do now?
- Saumitra Bhardwaj
EXIT INDIAN OIL CORPORATION BELOW RS 117 LEVEL AND AVERAGE ABOVE RS 140 LEVEL
IOC is currently trading at Rs 132.30. Its 52-week high/low stand at Rs 221/Rs 105.65 made on October 27, 2017 and October 5, 2018, respectively, portraying a downtrend. The stock gave a descending triangle pattern breakdown on October 4 at Rs 150 level and gave a sharp fall of up to 52-week low in just two trading sessions. The stock surged up to Rs 136-137, which is near to the 61.8% retracement level of its prior downward move and is consolidating at those levels. The stock has witnessed volume built-up and sharp bounce back of the 14-period RSI from the oversold zone. We suggest a hold with a stop loss at Rs 117 level.
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.