Technical Portfolio Guide

PETRONET

CMP: Rs. 212.85
BSE Code: 532522

Can I buy shares of Petronet for the short term?
- Amit Ambildhuke

BUY PETRONET AT CURRENT PRICE WITH STOP LOSS OF RS 200 ON CLOSING BASIS.

Petronet LNG Ltd is currently trading at Rs 212.85. Its 52-week high/low stand at Rs 260/Rs 202 made on January 31,2018 and May 16, 2018, respectively. On the weekly scale, the stock has bounced from its crucial 38.20 per cent Fibonacci retracement support of its entire upward move started from the low of August 28, 2015, to its all-time high made in November 2017. Considering the daily time frame, the stock has recently given breakout of downward slopping trendline formed by connecting highs from November 2, 2018. The 14-period day RSI is quoting around 47.70 and it has recently given positive crossover. In the coming weeks, the stock is expected to touch its long term moving average, i.e. 200-day EMA which is quoting around Rs 223. On the downside, Rs 205-Rs 200 is likely act as the short term support. Hence, we suggest buying at the current price with the stop loss at Rs 200 on a closing basis. 

CIPLA

CMP: Rs. 527.75 BSE
Code: 500087

Shall I enter Cipla as it has fallen drastically in the last couple of months?
- Amit Javiya

AVOID BUYING CIPLA FOR NOW.

Cipla Ltd is currently trading at 527.75. Its 52-week high/low stand at Rs 678/Rs 503.95 made on September 19, 2018 and December 10, 2018, respectively. Since last three years, the stock has been trading in a narrow consolidation. After registering its 52-week high, the stock has fallen sharply with high volumes, making series of lower lows. Considering the daily time frame, the stock is trading below its crucial long term moving average, i.e. 200-day exponential moving average. The 14-period day RSI is quoting around 44.20 and it has not able to cross above the 60 mark since September 26, 2018. However, the volumes and oscillators are too poor to suggest any momentum, for now. Considering all the above factors, we recommend you to avoid buying Cipla for now.

PERSISTENT

CMP: Rs. 618.55
BSE Code: 533179

I have bought 200 shares of Persistent at Rs 570 for the short term. What should I do now?
- Srinivasa Rao B

BOOK PARTIAL PROFIT AT THE CURRENT PRICE. HOLD LIMITED QUANTITY WITH STOP LOSS OF RS 594 ON CLOSING BASIS.

Persistent Systems Ltd is currently trading at Rs 618.55. Its 52-week high/low stand at Rs 915/Rs 532.80 made on September 10, 2018 and November 13, 2018, respectively. After registering its 52-week low, the stock has given minor bounce along with low volumes. For the near term, the stock has a cluster of resistances ahead, one is the opening downside gap resistance zone of Rs 658-Rs 629 created on October 22,2018 and the second one is 38.2 per cent Fibonacci retracement level of its entire downward journey from its 52-weeks high to 52-week low, which is at Rs 678.50. On the daily time frame, the stochastic has recently given negative crossover in the oversold zone, which predicts pause in the short term trend. The 14-period day RSI is also not able to cross above the 60 mark since September 10, 2018. Its crucial short term moving average, i.e. 21-day EMA is likely to act as minor support. Hence, we recommend you to book partial profit at the current price and hold limited quantity with stop loss of Rs 594 on a closing basis. 

SPARC

CMP: Rs. 210.85
BSE Code: 532872 

I am holding shares of SPARC bought at Rs 218, I don’t want to exit at loss. What should I do?
- Hari Singh

EXIT BETWEEN RS 215-RS 220

Sun Pharma Advanced Res Co. Ltd is currently trading at Rs 210.85. Its 52-week high/low stand at Rs 532.40/Rs 195 made on January 12, 2018 and December 10, 2018, respectively. After hitting 52-week high in January 2018, the stock has been falling consistently and making series of lower lows. From June 15, 2018, the stock is trading below its crucial long term moving average, i.e. 200-day EMA. Considering the weekly and the daily time frames, all the momentum indicators are highly in oversold zone, which predicts the stock is likely to give minor pull-back in the coming days. After the minor pull-back, the original downtrend is likely to resume in the coming days. Overall, we suggest you to use the short term pull-back to exit the stock.

KSCL

CMP: Rs. 597.50
BSE Code: 532899

Can I enter KSCL at current market price?
- Ashutosh Verma

BUY KSCL AT CURRENT PRICE WITH STOP LOSS OF RS 495 ON CLOSING BASIS

Kaveri Seed Co. Ltd is currently trading at Rs 597.50. Its 52-week high/low stand at Rs 659.95/Rs 433 made on August 31, 2018 and February 6, 2018 respectively. Considering the daily time frame, after nine weeks of consolidation, the stock had recently given a multiple resistance breakout at Rs 542 and hit Rs 558.70, along with rising volumes. The 14-period day RSI is trading in bullish zone, which is positive for the stock. For the short term, Rs 500-Rs 495 is likely to act as the short term support, while on the upside, the stock is likely to touch the levels of Rs 625- Rs 650 in the near term. Therefore, we suggest you to buy KSCL at the current price with stop loss of Rs 495 on a daily closing basis.

PNB HOUSING

CMP: Rs. 972.10
BSE Code: 540173

I am holding PBN Housing bought at Rs 950. The stock is not rising. What should I do?
 - Vidhi Rathi

HOLD WITH STOP LOSS OF RS 865 ON CLOSING BASIS

PNB Housing Finance Ltd is currently trading at Rs 972.10. Its 52-week high/low stand at Rs 1444/Rs 694 made on May 3, 2018 and October 26, 2018 respectively. After registering its 52-week low, the stock failed to witness any follow-through move and it formed a strong base around the levels of Rs 696-701. After forming a strong base, the stock entered into an upmove where it went on to register high of Rs 1039. In the past couple of weeks, the stock has been consolidating, while the stock has managed to hold its 50 per cent Fibonacci retracement level of its entire upward move started from its 52-week low to the high of November 2018. The 14-period day RSI is quoting around 56.15 and it has recently given positive crossover, which is positive for stock. The stock has strong support around the level of Rs 865. Hence, we suggest you to hold with stop loss of Rs 865 on a closing basis.

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.