Technical Portfolio Guide
JK TYRES
CMP: Rs.102.75
BSE Code: 530007
Since crude oil prices have plunged recently, the tyre industry looks promising. So, can I enter JK Tyre now?
- Abhishek Benkar
ENTER JK TYRE ABOVE RS 120 ON A CLOSING BASIS
JK Tyre is currently trading at Rs 102.75. Its 52-week high/low stand at Rs 192.95/Rs 87.70 made on February 12, 2018 and October 9, 2018, respectively. After hitting 52-week high, the stock witnessed a correction and it marked a sequence of lower top, lower bottom on the higher time frame. However, the correction halted in the close proximity of 61.8 per cent retracement of its entire upmove from September 2013 to February 2018. Currently, on the weekly time scale, the stock is facing some resistance near its multi-touch point downward sloping trendline and, on the daily time frame, the stock is trading above its long term moving average, i.e. 200-day EMA. We would recommend buying this stock only if the stock witnesses breakout from the multi-touch downward sloping trendline.
PIDILITINDS
CMP: Rs.1154.90
BSE Code: 500331
I have bought shares of Pidilite Industries at Rs 1020. Should I book profit at the current levels?
- Johny Kacharakkal
BOOK PARTIAL PROFIT NEAR RESISTANCE ZONE OF RS 1180-1190
Pidilite Industries is currently trading at Rs 1154.90. Its 52-week high/low stand at Rs 1194.80/Rs 800 made on August 28, 2018 and February 6, 2018, respectively. After registering its 52-week high, the stock entered into a corrective phase and halted its correction around its 100-week EMA, and the stock also formed a double bottom like pattern on the daily time frame. The 14-period daily RSI is quoting at 71.23, hence the stock has reached overbought zone. Other indicators and oscillators are also in the overbought zone on the daily time frame. Additionally, the stock is approaching towards its all-time high level which is placed in the region of Rs 1188 and we would suggest to book profit around these levels. On closing above this level on a weekly basis, one can enter again for momentum trade.
NB VENTURES
CMP: Rs.125.10
BSE Code: 513023
I bought stocks of Nava Bharat Ventures at higher levels, and presently, the stock is quoting at lower levels. Can I average at current levels?
- Sai Krishna
AVOID ENTERING NAVA BHARAT VENTURES FOR NOW
Nava Bharat Ventures is currently trading at Rs 125.10. Its 52-week high/low stand at Rs 184.20/Rs 108.10 made on January 15, 2018 and October 8, 2018, respectively. On the weekly time frame chart, after hitting its 52-week high, the stock is trading in a zigzag movement. The stock gave bounce from its 52-week low, but with relatively very low volumes. On the daily time frame, the stock is trading below its important long term moving average, i.e. 200-day EMA. Moreover, the stock is placed near its resistance level as define by the downward sloping trendline on the weekly time frame adjoining the highs of January 2018- August 2018-September 2018 and November 2018. Considering the above factors, we would suggest you to avoid averaging Nava Bharat Ventures for now.
ONGC
CMP: Rs.152.25
BSE Code: 500312
ONGC is trading near its 52-week low. Can I enter now?
- Ratnesh Kumar
AVOID BUYING ONGC FOR NOW.
ONGC is currently trading at Rs 152.25. Its 52-week high/low stand at Rs 212.90/Rs144.90 made on January 25, 2018 and October 8, 2018, respectively. To begin with, the stock is trading below its important long term moving average, i.e. 200-day EMA. Since the beginning of the year 2018, the stock has seen a decline, which halted near its lower end of the channel on the monthly time frame. The 14-period daily RSI is quoting at 40.12, also the stock has not managed to cross the 60 mark since early October. Considering there is no momentum in the stock at the current levels, we suggest avoiding this stock for now.
FEDERAL BANK
CMP: Rs.80.70
BSE Code: 500469
Can I enter in Federal Bank for a 10 per cent upside move?
- Madhu Venkatachalaiah
BUY FEDERAL BANK ABOVE RS 84 ON A CLOSING BASIS.
Federal Bank is currently trading at Rs 80.70. Its 52-week high/low stand at Rs 116.75/Rs67.05 made on January 15, 2018 and October 4, 2018, respectively. After hitting its 52-week high, the stock corrected sharply and halted its correction near the rising trendline on the monthly time frame. The stock formed a bullish engulfing-like candlestick pattern on the monthly time frame as on the month ended October 2018. On the weekly scale, the stock is consolidating near its downward slopping trendline resistance zone since last five weeks with relatively low volumes. Consolidation near resistance zone and rejection from lower levels are suggesting channel resistance is likely to break. The 14-period daily RSI is quoting at 59.52 and recently it has given positive crossover. Hence, we suggest buying Federal Bank only after it manages to close above Rs 84.
GATI
CMP: Rs.90.95
BSE Code: 532345
Can I buy Gati at CMP?
- Sona Deepan
AVOID GATI LTD FOR NOW.
GATI is currently trading at Rs 90.95. Its 52-week high/low stand at Rs 154.45/Rs 66.65 made on January 17, 2018 and October 1, 2018, respectively. After hitting 52-week low, the stock has bounced almost 35 per cent slowly with relatively low volumes. On the daily time scale, the stock has recently managed to close above its immediate hurdle of Rs 89, but there are series of resistance levels ahead to break, beginning with the multitouch point downward slopping trendline resistance zone of Rs 100-103 and the 200-day EMA. All resistance factors mentioned above may build selling pressure or profit-booking near this zone. Hence, we suggest avoiding entering this stock for now.
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.