Technical Portfolio Guide
FORCE MOTORS LTD
CMP: Rs. 1711.35
BSE Code: 500033
I have bought 30 shares of Force Motors @ Rs 1922. The stock is currently trading at Rs 1700. Is it a stock to hold for the long term for better returns (6 months) or would it be better to sell? - Shridhar Velagapudi
HOLD WITH THE STOP LOSS OF RS 1480 ON A CLOSING BASIS.
Force Motors Ltd. is currently trading at Rs 1711.35. Its 52-week high/low stand at Rs 3238/Rs 1300 made on April 24, 2018 and January 29, 2019 respectively. The stock had given an upward sloping trendline breakdown at Rs 3790 as on weekend of September 25, 2017, and, thereafter, it marked the sequence of lower tops and lower bottoms till 52-week low. The major trend is still negative as the stock is trading below its 50-week EMA, 100-week EMA and 200-week EMA, but on a weekly time frame, the stock had formed reversal 'three white soldiers' candlestick pattern along with strong volumes, which is positive for the stock. The weekly MACD stays bullish as it is trading above its signal line and the weekly fast stochastic line is also trading above its slow stochastic line, which suggests bullish bias. In case the stock sustains above Rs 1800 level, we may see some more upside. Hence, we suggest you to hold with stop loss of Rs 1480 on a closing basis.
DHFL LTD
CMP: Rs. 141.35
BSE Code: 511072
Please suggest what I should do with DHFL I bought at Rs 240 for long term?
- Arun Kumar
EXIT AT THE CURRENT MARKET PRICE
Dewan Housing Finance Corporation Ltd. (DHFL) is currently trading at Rs.141.35. Its 52-week high/low stand at Rs 690/Rs 97 made on September 3, 2018 and February 4, 2019 respectively. The stock had formed bearish engulfing candle as on weekend of September 7, 2018, and thereafter, the stock has been falling consistently along with higher volumes and marking a series of lower lows. Considering the weekly time frame, the stock had formed inverted hammer pattern near 52-week low and, thereafter, witnessed a bounce-back along with low volumes, which indicates it is just a pull-back and the downtrend is likely to resume in the coming weeks. The stock is consistently trading below its crucial long term moving averages, i. e. 100-day EMA and 200-day EMA. The 14-period weekly RSI is quoting at the 30.31 level, which depicts lack of momentum for now. Considering all the above factors, we recommend you to exit DHFL at the current market price.
THE BYKE HOSPITALITY LTD.
CMP: Rs. 26.95
BSE Code: 531373
I bought BYKE Hospitality as per your recommendation, but I missed your exit call. Now, what should I do? Please suggest.
- Arjun Verma
EXIT BYKE HOSPITALITY LTD BELOW RS 25
The BYKE Hospitality Ltd. is currently trading at Rs.26.95. Its 52-week high/low stand at Rs 205/Rs 25.20 made on April 20, 2018 and February 20, 2019, respectively. The stock witnessED lower tops and slightly similar bottoms after hitting its all-time high. Thereafter, it gave a rectangle pattern breakdown at Rs 150 as on weekend of July 6, 2018 and gave almost continuous downfall along with reasonable volumeS. At present, the stock is trading below its 20-day EMA (30.65), 50-day EMA (41.70), 100-day EMA (58.30) and 200-day EMA (85.60), which indicates a long term downtrend. The indicators and oscillators are trailing near its oversold zone since long, and hence should not be an issue. The ADX and -DI is above the +DI, which indicateS that the downtrend will continue. Moreover, the stock is trading below its weekly Bollinger band average of Rs 56.50. Hence, we suggest you to exit the stock below Rs 25, as it will indicate a major trend continuation.
ICICI PRUDENTIAL LIFE INSURANCE CO
CMP: Rs. 330.30
BSE Code: 540133
I have bought ICICI Prudential Life Insurance above Rs 385. Now I would like to know your suggestion on this stock looking to the current market.
- G L Bhojwani
HOLD WITH STOP LOSS OF RS 315 ON A CLOSING BASIS.
The ICICI Prudential Life Insurance Company Ltd. is currently trading at Rs.330.30 Its 52-week high/low stand at Rs 462/Rs 277.95 made on May 11, 2018 and February 4, 2019, respectively. The stock has been trading with lower tops and lower bottoms since its 52-week high level, where it had formed spinning top pattern on the daily time frame. The stock has been trading above its crucial short term moving averages, i.e. 20-day EMA,50-day EMA and 100-day EMA. The 14-period day RSI too is quoting at 59.30, which is supporting momentum in the stock. Additionally, the stock is trading above Ichimoku Cloud, which is positive for the stock. However, at present, the stock is hovering around downward sloping trendline which coincides with the 200-day EMA. In case the stock sustains above Rs 350 level, we may see some more upside. Hence, we suggest you to hold ICICI Pru Life with stop loss of Rs 315 on a closing basis, which is upward sloping trendline support level.
KEI INDUSTRIES LTD
CMP: Rs. 390.75
BSE Code: 517569
I have bought KEI industries Ltd at Rs 407. It is not moving in the short term. Please guide.
- Nirav Shah
HOLD WITH STOP LOSS OF RS 360 ON A CLOSING BASIS
The KEI Industries Ltd. is currently trading at Rs.390.75. Its 52-week high/low stand at Rs 494.80/Rs 248.40 made on May 30, 2018 and October 23, 2018, respectively. The stock had formed Doji candle as on weekend of June 1, 2018 and, thereafter, it witnessed correction. The correction was halted near 50 per cent retracement of the prior upward rally started from the low of January 2014 to its all-time high. The stock is trading above its 20-day EMA (350.35), 50-day EMA (351.10), 100-day EMA (356.50) and 200-day EMA (362.60), which indicates a short-long term uptrend. At present, the stock has given breakout of downward sloping trendline on the daily time frame along with reasonable volumes. Additionally, the stock is trading above its upper Bollinger band level of Rs 389.65 According to MACD analysis on the daily chart, there is centreline bullish crossover, which is positive for the stock. Hence, we suggest you to hold KEI with stop loss of Rs 360 on a closing basis.
AVANTI FEEDS LTD
CMP: Rs. 406.05
BSE Code: 512573
Can I buy Avanti Feeds at the current levels?
- Danish
BUY AVANTI FEEDS AT THE CURRENT PRICE
Avanti Feeds Ltd. is currently trading at Rs.406.05. Its 52-week high/low stand at Rs 840.83/Rs 306.50 made on April 26, 2018 and January 29, 2019, respectively. The stock had formed bearish engulfing candle as on weekend of November 17,2017, and thereafter, it witnessed lower tops and lower bottoms. Recently, on the daily time frame, the stock had given breakout of falling wedge pattern at Rs 350 along with strong volumes. Additionally, the stock had formed sizeable bullish candle on the breakout day and, thereafter, witnessed follow-up buying. The 14-period day RSI too is quoting at 73.15. The daily MACD stays positive as it is trading above its signal line. Moreover, on March 6,2019, the stock managed to close above Ichimoku Cloud, which is positive for the stock. Considering all the above factors, we recommend you to buy Avanti Feeds at the current price.