Technical Portfolio Guide
MCX
CMP: Rs. 701 BSE Code:534091
I had bought MCX at Rs 915 level. When can I average to recover the losses?
- Bhavin Hemdev
CAN ENTER MULTI COMMODITY EXCHANGE OF INDIA AT CURRENT LEVELS
MCX is currently trading at Rs 701. Its 52-week high/low stand at Rs 1102/Rs 650 made on October 24, 2017 and October 1, 2018, respectively. The stock gave a consistent fall of 41% up to the 52-week low from its high of Rs 917 on August 6, 2018. The stock consolidated for around six consecutive days and bounced back sharply. Considering the daily time frame, the stock has formed an inverse head & shoulders pattern and has given a breakout Rs 785 level on October 24. The breakout was supported by volumes and 14-period RSI positive crossover. Meanwhile, the stock also breached its 100-day and 200-day EMA levels on intra-day basis. We suggest you to enter at current levels.
TATA SPONGE
CMP: Rs. 788.90 BSE Code:513010
I am holding Tata Sponge bought at Rs 854. What should I do now?
- Soham Dalvi
EXIT TATA SPONGE IRON BELOW RS 775
Tata Sponge Iron is currently trading at Rs 788.90. Its 52-week high/low stand at Rs 1248/Rs 775 made on April 12, 2018 and October 23, 2018, respectively. The stock was trading in a descending triangle pattern since January 2018 and gave a pattern breakdown in July 2018, followed by a pull-back up to Rs 995, where it hit a triple top. Thereafter, the stock retreated again and gave a sharp fall up to Rs 775 level with a double bottom. The stock hints reversal with double bottom, rising volumes and 14-period RSI positive crossover but at 42, which suggests lack of momentum for now. We suggest you to exit below Rs 775.
M&M FINANCE
CMP: Rs. 404.10 BSE Code:532720
Can I enter M&M Financial Services at the current levels to average?
- Antara G Bhattacharya
AVOID FOR NOW AND ENTER M&M FINANCIAL SERVICES ON CLOSE ABOVE RS 405-407
M&M Financial Services is currently trading at Rs 404.10. Its 52-week high/low stand at Rs 537.50/351 made on May 2, 2018 and October 8, 2018, respectively. The stock was trading with lower tops and lower bottoms after it hit Doji at its 52-week high. The stock took multiple supports at Rs 351-353 and has bounced back on October 23 and 24 with volume spurt. However, the stock would start fresh upside rally only above Rs 405-407 on a closing basis, where Rs 405 acts as prior resistance on the daily time frame and Rs 407 as 38.2% retracement of the downward rally on the weekly time frame.
BAJAJ FINSERV
CMP: Rs. 5365.75 BSE Code:532978
I have purchased Bajaj Finserv recently at Rs 5300 level. What should be my next action?
- Dr Mehul Patel
HOLD BAJAJ FINSERV WITH A STOP LOSS OF RS 4800
Bajaj Finserv is currently trading at Rs 5365.75. Its 52-week high/low stand at Rs 7200/Rs 4444 made on August 16, 2018 and February 6, 2018 respectively. The stock consolidated at 52-week high levels for six consecutive days, followed by lower tops and lower bottoms with sharp declines. Recently, the stock breached its support zone of Rs 5100-5150 on October 23, but gave a pull-back on October 24, forming a hammer pattern supported by volume spurt and 14-period RSI positive crossover at 39. However, the trend is still negative and the stock is trading below its 100-day and 200-day EMA levels. We suggest you to hold with a stop loss of Rs 4800.
EICHER MOTORS
CMP: Rs. 21,894.60 BSE Code:505200
Can I buy Eicher Motors at current level?
- Digamber Hadap
AVOID EICHER MOTORS FOR NOW
Eicher Motors is currently trading at Rs 21,894.60. Its 52-week high/low stand at Rs 32762.90/Rs 20301.10 made on October 31, 2017 and October 4, 2018, respectively. Considering the weekly time frame, the stock was trading in a descending triangle pattern since June 2017. The lower trendline was a resistance-turned-multiple-support at Rs 26300. The stock gave a pattern breakdown in the September 28 week and hit 52-week low. Meanwhile, it also breached its 100-day and 200-day EMA levels and is consolidating at the lower levels. On the daily time frame too, the stock attempted a bounce-back from the 52-week low, but faced resistance at the 38.2% retracement level of the downward rally from Rs 29800. We suggest you to avoid for now.
BERGER PAINTS
CMP: Rs. 291.60 BSE Code:509480
At what price can I average Berger Paints to recover my earlier losses?
- Jagadish Pattar
AVERAGE BERGER PAINTS INDIA ABOVE RS 288
Berger Paints is currently trading at Rs 291.60. Its 52-week high/low stand at Rs 349/Rs 232 made on August 29, 2018 and February 6, 2018 respectively. The stock hit a Doji at its 52-week/all-time high levels and gave a consistent fall of up to Rs 265 in the first place, breaching its rounding top pattern neckline support at Rs 272-275. The stock attempted a bounce of up to 38.2% retracement of the prior downward rally and retreated again up to Rs 260 level, which is its upward sloping trendline level initiated on November 2016. The support was in the form of Doji and rising volumes and 14-period RSI positive crossover. We suggest you to average above Rs 288.
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.