Technical Portfolio Guide

CMP: Rs.1116.35
BSE Code: 500331

I am holding the shares of Pidilite bought at the breakout @ Rs 1005. What should I do now? Should I book profit or hold?
- Murari Roy

BOOK PROFIT AT THE CURRENT PRICE

Pidilite Industries Ltd is currently trading at Rs 1116.35. Its 52-week high/low stand at Rs 1209.40/800 made on December 19, 2018 and February 6, 2018, respectively. After registering high of Rs 1195.40, the stock entered into a corrective phase. The correction was halted near its crucial 100-week EMA and, thereafter, the stock witnessed higher tops and higher bottoms till its 52-week high. Recently, on the weekly scale, the stock had formed reversal shooting star pattern and, since then, the stock is trading with gradual lower tops and lower bottoms. Meanwhile, it is also trading below its major 50-day,100-day and 200-day SMA levels. The 14-period day RSI is quoting around 43.68 and it is in a falling mode. According to MACD analysis on the daily chart, there is centre line bearish crossover, which is negative for the stock. Considering all the above factors, we recommend you to book profit at the current price.

LT

CMP: Rs.1313.40
BSE Code: 500510

Can I buy shares of LT for the short term as it has fallen quite a lot?
- Ajay Gaonkar

AVOID BUYING LT FOR NOW.

Larsen & Toubro Ltd is currently trading at Rs 1313.40. Its 52-week high/low stand at Rs 1469.60/1183.40 made on February 1, 2018 and October 23, 2018, respectively. The stock formed reversal bearish engulfing candle on December 21, 2018 and, thereafter, it made a series of lower tops and lower bottoms. At present, the stock is trading below its 20-day EMA (1329.40), 50-day EMA (1352.90), 100-day EMA (1347.70) and 200-day EMA (1327.00), which indicates a medium-long term downtrend. The indicators and oscillators are lying in the oversold zone. A bullish diversion is spotted on the daily 14-period RSI and the stochastic, but the reversal is yet to be confirmed. For any short term upside, the stock needs to form a sizeable bullish candle above the 20-day EMA along with reasonable volumes. Hence, we suggest you to avoid buying LT for now.

CMP: Rs.196.30
BSE Code: 532953

I am holding shares of Vguard bought at the breakout @ Rs 210. The stock went up, but I could not sell. What should I do now?
- Jasmine John

HOLD WITH STOP LOSS OF RS 198 ON A CLOSING BASIS.

V-Guard Industries Ltd is currently trading at Rs 196.30. Its 52-week high/low stand at Rs 254.90/159.10 made on April 20, 2018 and October 9, 2018, respectively. Earlier, the stock had witnessed a downward sloping trendline breakout around Rs 211 on December 12, 2018, and thereafter, the stock surged sharply and registered a high of Rs 237. Since then, the stock entered into the corrective phase. At present, since last three weeks, the stock is hovering around the downward sloping trendline and it coincides with the 100-day SMA. The 14-period RSI on the daily chart took support around the level of 35 and, at present, it is trading above its 9-day average, which is positive for the stock. According to the daily MACD, there is centreline bullish crossover. The fast stochastic line is trading above its slow stochastic line and a positive divergence is also spotted recently. 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 198 on a closing basis, which is the confluence of downward sloping trendline and 100-day SMA.

CMP: Rs.674.80
BSE Code: 500770

Can I buy Tatachem shares for my short-medium term portfolio?
- Kantilal Gandhi

AVOID BUYING TATACHEM FOR NOW.

Tata Chemicals Ltd is currently trading at Rs 674.80. Its 52-week high/low stand at Rs 786.95/623.50 made on May 4, 2018 and October 9, 2018, respectively. After hitting 52-week low, the stock bounced back from the lower level to test its 61.8 per cent Fibonacci retracement level of prior downward move started on September 3, 2018 up to its 52-week low. It had made couple of attempts to close above 61.8 per cent, but it failed and had fallen down. At present, the stock is trading below its 20-day EMA (685.55), 50-day EMA (690.45), 100-day EMA (693.85) and 200- day EMA (695.60, which indicates a medium-long term downtrend. However, the volumes and oscillators are too poor to suggest any momentum for now. On the weekly time frame, the Average Directional Index (ADX) is continuously falling since October 2018 and it is currently quoting around 8.57, which suggests lack of strength in any directional momentum. Considering all the above factors, we recommend you to avoid buying Tatachem for now.

CMP: Rs.18823.95
BSE Code: 500530

I am holding Bosch Ltd for medium-long term bought at Rs 18400. What is your take on it?
- Saibal Chattopadhyay

HOLD WITH STOP LOSS OF RS 17500 ON A CLOSING BASIS.

Bosch Ltd is currently trading at Rs 18823.95. Its 52-week high/low stand at Rs 22400/16990.40 made on August 31, 2018 and March 23, 2018, respectively. Considering the weekly time frame, after registering all-time high in the month of March 2015, the stock entered into the contracting consolidation, which looks like a symmetrical triangle. At present, the stock has reached near the lower trendline of symmetrical triangle, which is currently placed at Rs 17500 level. The 14-period day RSI has bounced back after taking support at the 30 level. On the daily time frame, the fast stochastic is trading above its slow stochastic line and, recently, positive divergence has been also spotted, which is positive for the stock. Considering all the above factors, we suggest you to hold the stock at the current price if you have enough risk appetite, but follow strict stop loss of Rs 17500 on a closing basis, which is symmetrical triangles lower trendline support.

CMP: Rs.235
BSE Code: 532756

Can I buy Mahindra CIE shares for my short-term portfolio?
- Kumar Saha

BUY ONLY ABOVE RS 242 ON A CLOSING BASIS.

Mahindra CIE Automotive Ltd is currently trading at Rs 235. Its 52-week high/low stand at Rs 301.80/199.20 made on September 11, 2018 and February 9, 2018, respectively. After witnessing a double top at 52-week high, the stock has seen lower tops and lower bottoms along with low volumes since then. At present, on the weekly time frame, the stock is hovering around multi-touch point upward sloping trendline support and it coincides with its long term crucial 200-week SMA. The weekly stochastic has recently given positive crossover in the oversold zone, which suggests a pause in the downtrend. The volume sand other indicators are too poor to comment on and the reversal is yet to be confirmed. However, for any further upside, the stock needs to form a sizeable bullish candle along with reasonable volumes above the recent swing high of Rs 242. Hence, we suggest you to buy MAHINDCIE only above Rs 242 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.