Technical Portfolio Guide
EID PARRY
CMP: Rs.207.95
BSE Code: 500125
Can I enter EID Parry for medium term as it has fallen considerably?
- Bishal Kasaudhan
AVOID EID PARRY FOR NOW
E.I.D.Parry (India) Ltd. is currently trading at Rs.207.95. Its 52-week high/low stand at Rs 391.95/Rs 177 made on January 5, 2018 and October 8, 2018, respectively. After registering its 52-week high, the stock has been falling consistently and making series of lower low. Currently, the stock is trading below its 20-day EMA (210.20), 50-day EMA (213.80), 100-day EMA (220) and 200-day EMA (235.55), which indicates a medium-long term downtrend. After looking at the daily chart, it has been continuously trading below its 200-day EMA level from January. However, the volumes and oscillators are too poor to suggest any momentum. The 14-period daily RSI is quoting around 46.64 and it was not able to cross the 60 mark since November 13, 2018. The Average Directional Index (ADX) indicator on the daily time frame is quoting around 12, which suggests there is no strength in any directional momentum. Considering all the above factors, we recommend you to avoid buying EID Parry for now.
ENGINEERS INDIA
CMP: Rs.124.45
BSE Code: 532178
I am holding stocks of Engineers India at an average price of Rs 115. Should I continue to hold this scrip?
- Thomas Philip
HOLD WITH STOP LOSS OF RS 115 ON A CLOSING BASIS.
Engineers India Ltd. is currently trading at Rs.124.45. Its 52-week high/low stand at Rs206.20/Rs 100.45 made on December 26, 2017 and October 9, 2018, respectively. As per the technical indicators, the stock is in an uptrend for the medium term. Considering the daily time frame, the stock has recently given breakout of downward slopping trendline formed by connecting the swing highs of September 17, 2018. The breakout was supported by justifiable volumes. The stock is trading above its crucial short term moving average, i.e. 21-day EMA and it is in rising mode, which is positive for the stock. The indicators and oscillators are also in bullish territory. On the upside, the stock is likely to touch Rs 127, followed by Rs 133, in the near term. Hence we recommend you to hold Engineers India with stop loss of Rs 115 on a closing basis.
GSFC
CMP: Rs.112.45
BSE Code: 500690
Can I enter GSFC at the CMP?
- Hari Singh
BUY GSFC ABOVE RS 120
Gujarat State Fertilisers Chemical Ltd. is currently trading at Rs.112.45. Its 52-week high/low stand at Rs 166.30/Rs 85.60 made on January 16, 2018 and October 11, 2018, respectively. After registering 52-low, the stock bounced sharply and, thereafter, it has been consolidating. However, the stock is in an uptrend for the the short term as it is trading above its crucial short term moving average, i.e. 21-day EMA. Considering the daily time frame, currently the stock is placed right at the edge of the multi-touch point downward slopping trendline resistance formed by joining the swing highs of early May 2018 and it coincides with its long term moving average, i.e. 200-day EMA. For any further upside, the stock needs to form sizeable bullish candle, along with decent volumes, above these resistances. Hence, we recommend you to buy GSFC only above Rs 120.
KEC
CMP: Rs.305.05
BSE Code: 532714
I have bought KEC at Rs 295 for the short term. Should I wait or exit with profits?
- Dayanand Khire
BOOK PARTIAL PROFIT AT CMP & HOLD THE REST WITH STOP LOSS OF RS 288 ON A CLOSING BASIS.
KEC International Ltd. is currently trading at Rs.305.05. Its 52-week high/low stand at Rs 442.60/Rs 244.20 made on April 19, 2018 and October 9, 2018, respectively. After registering its 52-week low, the stock is trading in a range since last 10 weeks. As per the technical indicators, the stock is in short term uptrend. On the daily time frame, the stock has formed outside bar resembling a “bullish engulfing” near its short term support zone on December 11, 2018, and bounced sharply, along with decent volumes. The stock has made multiple attempts to break out of the resistance zone of Rs 318-320, but it has failed and witnessed a gradual downmove thereafter. Currently, the stock has again taken pause near this resistance zone, and unless it clears out this immediate resistance zone at Rs 318-Rs 320, it may not see any further upmove in the near term. Hence, we recommend you to book partial profit near the resistance level and hold the balance quantity, with stop loss of Rs 288 on a closing basis.
KOLTE PATIL
CMP: Rs.248
BSE Code: 532924
I am holding shares of Kolte Patil at Rs 225. What should I do, hold or exit?
- Vinay Chaudhary
HOLD WITH THE STOP LOSS OF RS 234 ON A CLOSING BASIS.
Kolte-Patil Developers Ltd. is currently trading at Rs.248. Its 52-week high/low stand at Rs 404.25/Rs 207.30 made on January 12, 2018 and October 1, 2018, respectively. After touching its 52-week low, the stock spent almost 8 weeks in contracting consolidation. However, the stock has recently given a breakout of contracting consolidation, along with decent volumes. The RSI suggests a ‘buy’ in the stock. According to MACD analysis, there is a centreline bullish crossover, which is a positive signal. The stock is trading above its short term crucial short term moving average, i.e. 21-day EMA and it is in rising mode. Thus, we suggest holding this stock with a stop loss of Rs 234 on a closing basis for a possible upmove to the levels of Rs 270-280.
NBCC
CMP: Rs.58.20
BSE Code: 534309
Can I buy NBCC at the CMP for the long term?
- Amit Ambildhuke
BUY AT CURRENT PRICE WITH STOP LOSS OF RS 50 ON A WEEKLY CLOSING BASIS.
NBCC (India) Ltd. is currently trading at Rs.58.20. Its 52-week high/low stand at Rs 128.85/Rs 46.55 made on December 20, 2017 and December 11, 2018 respectively. After registering 52-week low, the stock bounced sharply, along with strong volumes. On the weekly scale, the stock formed hammer kind of reversal pattern, followed by a sizeable bullish candle, which suggests bulls were in a dominating position. Additionally, the higher volumes and cues from oscillators are supporting the reversal. The 14-period weekly RSI is currently quoting around 42.06 and it has already given positive crossover, which is a positive for the stock. The weekly MACD stays bullish as it is trading above its zero line. Thus, we suggest you to buy NBCC at the current price, with a stop loss of Rs 50 on a weekly closing basis for a possible upward move to the levels of Rs 68-75.
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.