Technical Portfolio Guide
BODALCHEM
CMP: Rs. 113.60
BSE Code: 524370
Can I buy shares of Bodal Chemicals at the current levels for long term?
- Ashish Sankhe
BUY ONLY ABOVE RS 125 ON A CLOSING BASIS.
Bodal Chemicals Ltd. is currently trading at Rs.113.60. Its 52-week high/low stand at Rs 170.95/Rs 95 made on January 16, 2018 and September 24, 2018, respectively. The stock, after hitting its all-time high, entered into a corrective phase and touched a low of Rs 95.50. The correction was arrested in between 50 per cent and 61.8 per cent retracement of the prior upward rally from the low of September 2015 to its all-time high and it coincides with its long term 200-week SMA. Currently, the stock is hovering around a key resistance level as defined by the downward sloping trendine on the weekly scale. The 14-period weekly RSI took support around the level of 30 and, at present, it is trading above its 9-day average, which is positive for the stock. For further upside, the stock needs to form sizeable bullish candle above the trendline resistance. Hence, we suggest you to buy Bodal Chemicals only above Rs 125 on a closing basis, if the volumes and indicators are supportive.
WIPRO
CMP: Rs. 336.40
BSE Code: 507685
I have bought Wipro at Rs 320, should I hold or book profit?
- Narinder Juneja
HOLD WITH STOP LOSS OF RS 315 ON A CLOSING BASIS.
Wipro Ltd. is currently trading at Rs.336.40. Its 52-week high/low stand at Rs 344/Rs. 253.50 made on December 13, 2018 and June 6, 2018, respectively. The stock is already in a positive trend after it gave a kind of inverse head and shoulder breakout at Rs 291 level, and thereafter, registered a high of Rs 344. Since then, the stock has been trading in a broad range along with low volumes. Recently, on the daily time frame, the stock has witnessed a pullback after taking support near the upward sloping trendline, along with strong volumes. Meanwhile, it has been trading above its 50-day and 100-day simple moving averages. The 14-period RSI on the daily chart is in the rising trajectory, which suggests a bullish bias. The MACD stays bullish as it is trading above its zero line. Considering this, we suggest you to hold the stock at the current price if you have enough risk appetite, but follow strict stop loss of Rs 315 on a closing basis, which is its upward sloping trendline support level on the daily time frame.
STERLITE TECHNOLOGIES
CMP: Rs. 289.05
BSE Code: 532374
I want to buy shares of Sterlite Technologies. Is the CMP the right entry level?
- Johney Mahajan
AVOID STERLITE TECHNOLOGIES LTD FOR NOW
Sterlite Technologies Ltd. is currently trading at Rs.289.05. Its 52-week high/low stand at Rs 414.50/Rs 255.60 made on January 24, 2018 and June 6, 2018, respectively. After registering its 52-week high, the stock has been trading in a broad range. Currently, the stock is trading in contracting consolidation since last six weeks. The 14-period RSI has not able to cross the 60 mark since early November 2018, and, at present, the RSI is trading below its 9-day average and it is in a falling mode. The lower volumes and other oscillators still tilted southward point to some more downside, for now. Further, the stock is trading much below its important EMAs of 100-day and 200-day. Considering all the above factors, we recommend you to avoid buying Sterlite Technologies for now.
DHAMPUR SUGAR MILLS
CMP: Rs. 181.30
BSE Code: 500119
I am holding shares of Dhampur Sugar Mills at Rs 150 level. What should be my next action?
- Sunil Arora
BOOK PARTIAL PROFIT AT CURRENT PRICE AND HOLD THE REST WITH STOP LOSS OF RS 160 ON A CLOSING BASIS.
Dhampur Sugar Mills Ltd. is currently trading at Rs.181.30. Its 52-week high/low stand at Rs 221.90/Rs 72 made on January 16, 2018 and July 23, 2018, respectively. The stock formed a kind of reversal shooting star pattern at the all-time high level of Rs 330.50 as on weekend of November 3, 2017, and thereafter, it marked a series of lower tops and lower bottoms. At the lower levels, the stock formed a double bottom pattern and bounced sharply. Considering the weekly time frame, the stock is currently hovering around its long term crucial 100-week SMA and facing profit-booking at higher levels. According to the MACD analysis on weekly time frame, there is centreline bearish crossover, which is negative for the stock. There is negative divergence spotted on the 14-period day RSI. The other oscillators and indicators are facing resistance, but are yet to confirm the reversal. Hence, we suggest you to book partial profit at the current price and hold small quantity with stop loss of Rs 160 on a closing basis.
WOCKHARDT PHARMA
CMP: Rs. 501.35
BSE Code: 532300
Can I buy Wockhardt Pharma shares for my short-term portfolio?
- Pratik Kalariya
AVOID WOCKHARDT PHARMA FOR NOW
Wockhardt Ltd. is currently trading at Rs.501.35. Its 52-week high/low stand at Rs 979/ Rs 437.10 made on January 18, 2018 and October 26, 2018 respectively. The stock took resistance at the downward sloping trendline and formed a shooting star like candlestick pattern on the weekly time frame as on weekend of January 12, 2018, which also coincides with the 200-week SMA. Currently, the stock is trading below its 20-day EMA (512.70), 50-day EMA (518.65), 100-day EMA (543.60) and 200-day EMA (592.20), which indicates a medium-long term downtrend. Considering the daily time frame, the stock has been continuously trading below its 200-day EMA since early May 2018. The poor volumes and the oscillators lying below 50 depicts lack of momentum in the stock. The Average Directional Index (ADX) indicator on the daily time frame is quoting around 4.75, which suggests lack of strength in any directional momentum. Considering all the above factors, we recommend you to avoid buying Wockhardt Pharma for now.
RADIOCITY
CMP: Rs. 295.40
BSE Code: 540366
I am planning to buy Radiocity. Please provide your views on the stock and suggested entry price.
- Vikas Kumar
AVOID RADIOCITY FOR NOW
Music Broadcast Ltd. is currently trading at Rs.295.40. Its 52-week high/low stand at Rs 429.70/Rs 282.30 made on January 16, 2018 and July 18, 2018, respectively. After registering its all-time high, the stock has witnessed sharp correction and marked a low of Rs 285. Considering the daily time frame, the stock is trading below its crucial long term moving average, i.e. 200-day simple moving average since early May 2018. The 14-period day RSI is quoting around 29.35. 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 Radiocity for now.