Technical Portfolio Guide

BATAINDIA 

CMP: Rs 1257.95
BSE Code: 500043 

I am holding Bata India bought at Rs 1177. What should be my next action? 

- Pradeep Dhole 

HOLD WITH STOP LOSS OF RS 1195 ON A CLOSING BASIS 

Bata India Ltd is currently trading at Rs 1257.95. Its 52-week high/low stand at Rs 1283.40/673.60 made on February 13, 2019 and March 20, 2018, respectively. After registering high of Rs 1115.70 on August 29, 2018, the stock entered into corrective phase. The correction was arrested near 200-day EMA, and thereafter, the stock witnessed higher tops and higher bottoms. At present, the stock is trailing at its 52-week high levels and, recently, it has given pennant kind of pattern breakout along with higher volumes on the daily time frame. Additionally, the stock had formed sizeable bullish candle on the breakout day, which adds strength to the breakout. The 14-period RSI is quoting at 71.57, which suggests overbought in the stock but the reversal yet to confirm. Considering the breakout of pennant kind of pattern, the stock is likely to touch Rs 1300 in the coming days. Hence, we suggest you to hold Bata India with stop loss of Rs 1195 on a closing basis 

JK PAPER 

CMP: Rs 131.75
BSE Code: 532162 

Shall I enter JK Paper at CMP? 

- Siddharth Joshi 

AVOID BUYING JK PAPER FOR NOW. 

JK Paper Ltd is currently trading at Rs 131.75. Its 52-week high/low stand at Rs 193.95/97.85 made on August 21, 2018 and July 19, 2018, respectively. Near the dou ble top at around Rs 188-Rs 189, the stock formed bearish engulfing pattern as on weekend of November 16, 2018 and thereby fell marking a sequence of lower tops and lower bottoms and marked a low of around Rs 124 level. At present, the stock is trading below its major 50-day,100-day and 200-day EMA level, which suggests the stock is in medium-long term downtrend. The poor volumes and the 14-period day RSI quoting around the 38.48 level depicts lack of momentum for now. Moreover, the fast stochastic line is trading below its slow stochastic line, which suggests a negative bias. With this, the stock is trading below its Bollinger band average price of Rs 138.25 and the upper band is currently placed at Rs 154.10. Considering all the above factors, we recommend you to avoid buying JK Paper for now. 

RELIANCE IND 

CMP: Rs 1225.50
BSE Code: 500325

I am holding Reliance Industries bought for the short term at Rs 1190. What to do now? 

- Vinay Shankar 

BOOK PROFIT AT THE CURRENT PRICE. 

Reliance Industries Ltd is currently trading at Rs 1225.50. Its 52-week high/low stand at Rs 1328.75/881 made on August 29, 2018 and March 28, 2018, respectively. The stock has seen profit-booking from its 52-week high levels, where it had formed a kind of reversal shooting star pattern on the weekly time frame. The profit-booking was halted near 50-day SMA level. Considering the daily time frame, the stock had recently given symmetrical triangle breakout on January 15, 2019. Thereafter, the stock bounced sharply and marked a high around Rs 1321.20. Since then, the stock is witnessing correction and on February 12, 2019, the stock formed reversal inverted hammer pattern near the upward sloping trendline support, but it failed to give pattern confirmation and closed below the trendline support. The 14-period day RSI has cooled off after touching overbought zone and, at present, it is trading below its 9-day average and a negative divergence is also spotted recently. Considering this, we recommend you to book profit at the current price. 

AJANTA PHARMA 

CMP: Rs 983.90
BSE Code: 532331

I am holding Ajanta Pharma bought at Rs 925 for the long term. What should I do now? 

-Dinesh Bhutani 

HOLD WITH STOP LOSS OF RS 870 ON A WEEKLY CLOSING BASIS. 

Ajanta Pharma Ltd is currently trading at Rs 983.90. Its 52-week high/low stand at Rs 1459.70/897.60 made on March 27, 2018 and June 5, 2018, respectively. The stock has been trading with lower tops and lower bottoms since its all-time high where it had formed kind of reversal shooting star pattern as on weekend of October 7, 2016. Recently, the stock bounced sharply after witnessing triple bottom at around Rs 890- Rs 905 levels formed in June and July 2018, which was earlier quoted in December 2014. The recent bounce-back came with relatively higher volumes and the 14-period day RSI has also given positive crossover, which is positive for the stock. For any immediate decline, the zone of Rs 905-Rs 870 is likely to act as strong support, as it is confluence of triple bottom and 61.8 per cent Fibonacci retracement level of its entire upward move started from the low of January 2013 to its all-time high (Rs 101.60-Rs 2125). Hence, we suggest you to hold Ajanta Pharma with stop loss of Rs 870 on a weekly closing basis. 

COFFEE DAY 

CMP: Rs 270
BSE Code: 539436 

Can I buy COFFEE DAY at CMP for the medium term? 

- Jaladi Sudhakararao 

BUY COFFEEDAY ONLY ABOVE RS 300 ON A CLOSING BASIS. 

Coffee Day Enterprises Ltd is currently trading at Rs 270. Its 52-week high/low stand at Rs 356.20/237.10 made on April 30, 2018 and August 17, 2018, respectively. Considering the weekly time frame, after hitting all-time high, the formed reversal shooting star pattern and thereby witnessed correction. Since last nine months, the stock is trading in contracting consolidation which looks like symmetrical contracting triangle. Recently, after touching the lower trendline of symmetrical triangle, the stock bounced sharply along with low volumes. The 14-period day RSI took support around the level of 30 and, at present, it is trading above its 9-day average. For any further upside, the stock needs to form sizeable bullish candle above the upper trendline of the triangle, which is currently placed at Rs 300, along with higher volumes. Hence, we suggest you to buy COFFEE DAY only above Rs 300 on a closing basis, if the RSI and volumes support. 

TRENT 

CMP: Rs 341.50
BSE Code: 500251 

Can I enter Trent Ltd at the current levels for the long term? 

- Rajanikant Dhamelia 

AVOID TRENT FOR NOW; BUY ONLY ABOVE RS 372 ON A WEEKLY CLOSING BASIS. 

Trent Ltd is currently trading at Rs 341.50. Its 52-week high/low stand at Rs 391.75/295.10 made on August 28, 2018 and June 29, 2018, respectively. Considering the weekly time frame, since last one year, the stock is trading in contracting consolidation which looks like symmetrical triangle. At present, the stock is trading above its 50-week EMA (336.15), 100-week EMA (310), 200-week EMA (261.40), which suggests a long term uptrend. However, currently, the stock is consolidating in contracting triangle with poor volumes and oscillators are quoting below 55 and tilted southward, suggesting lack of momentum for now. For any further upside the stock need to form sizeable bullish candle above the upper trendline of the triangle, which is currently placed at 372, along with strong volumes. Hence, we suggest you to avoid buying Trent Ltd for now and buy only above Rs 372 on a weekly closing basis if indicators and volumes support.