Technical Portfolio Guide
DWARIKESH SUGAR INDUSTRIES LTD
CMP: Rs. 29.90
BSE Code: 532610
I am holding 1000 shares of Dwarikesh Sugar bought at Rs 70/share, but at present, no momentum is seen. What should I do?
- Shobha Sunil
HOLD WITH STOP LOSS OF RS 22 ON A WEEKLY CLOSING BASIS
Dwarikesh Sugar Industries Ltd is currently trading at Rs 29.90. Its 52-week high/low stand at Rs 34.35/Rs 14.05 made on October 15, 2018 and July 20, 2018, respectively. The stock had given a multiple touch point upward sloping trendline breakdown at Rs 55 as on weekend of December 15, 2017. Thereafter, it witnessed almost continuous downfall, where the stock hit below its major support level of Rs 33. Presently, the stock has formed a strong base around the level of Rs 20- Rs 22 and has bounced sharply along with relatively higher volumes. The stock is trading above all the crucial moving averages, i.e. 50-week, 100-week and 200-week EMA, which is positive for the stock. The 14-period weekly RSI is quoting at 62.54, suggesting momentum. The MACD also stays bullish as it is trading above its signal line. In case the stock sustains above the level of Rs 35, we may see the stock extending its upmove. Hence, we suggest you to hold Dwarikesh with a stop loss of Rs 22 on a weekly closing basis.
VIP INDUSTRIES
CMP: Rs. 428.10
BSE Code: 507880
I have bought 41 shares of VIP Industries at Rs 364.25 as per your recommendation, but I missed your exit SMS. Now what should I do?
- Pushpak V. Chaudhari
BOOK PROFIT AT THE CURRENT MARKET PRICE VIP
Industries Ltd is currently trading at Rs 428.10. Its 52-week high/low stand at Rs 645.05/Rs 287.30 made on August 28, 2018 and March 19, 2018, respectively. The stock had formed ‘Dark Cloud Cover’ candlestick pattern on the daily time frame which is a bearish trend reversal pattern appears in an uptrend and, thereafter, it entered into a corrective phase. At present, the stock is trading below all of its crucial long and short term moving averages, i.e. 50-day EMA, 100-day EMA and 200-day EMA. The relatively high volumes in the fall and the 14-period day RSI tilted southward indicate lack of momentum for now. The fast stochastic is trading below its slow stochastic line. The daily ADX and +DI is below the -DI, which indicates negative strength in the stock. Additionally, the stock is trading much below Ichimoku Cloud, which suggests a negative bias. Considering all above factors, we suggest you to book profit in VIP Industries at the current market price.
BOMBAY BURMAH TRADING CORP
CMP: Rs. 1331.85
BSE Code: 501425
I am holding 80 shares of Bombay Burma at an average price of Rs 1650. What to do now? Hold or sell?
- V. Ganesan
HOLD WITH STOP LOSS OF RS 1160 ON A WEEKLY CLOSING BASIS.
BBTC Ltd is currently trading at Rs 1331.85. Its 52-week high/low stand at Rs 2113.85/ Rs 1082.05 made on August 24, 2018 and March 26, 2018, respectively. The stock had formed reversal shooting star candlestick pattern as on weekend of August 31,2018 and, thereafter, it witnessed a sharp correction. The correction was arrested in-between the 50 per cent and 61.8 per cent retracement of the previous upward rally. Considering the weekly time frame, the stock has recently taken support at its upward sloping trendline at Rs 1160 level. Meanwhile, the stock is trading above its long term moving averages, i.e. 100-Week EMA, 200-Week EMA. The 14-period weekly RSI is currently quoting at 51.75 and it has recently given a positive crossover. The weekly MACD stays positive as it is trading above its signal line. Moreover, the fast stochastic is also trading above its slow stochastic line, which is positive for the stock. Hence, we suggest you to hold BBTC with a stop loss of Rs 1160 on a weekly closing basis, which is the upward sloping trendline support level.
MRF LTD
CMP: Rs. 57240.95
BSE Code: 500290
Shall I enter MRF at CMP for long term investment?
- Shridhar Divekar
AVOID BUYING MRF AT CURRENT PRICE, BUY ONLY ABOVE RS 63,500 ON A WEEKLY CLOSING BASIS.
MRF Ltd is currently trading at Rs 57,240.95. Its 52-week high/low stand at Rs 81423/Rs 53901.45 made on April 30, 2018, and February 19, 2019, respectively. After registering all-time high, the stock had given a breakdown of the rising wedge pattern at Rs 74,800 as on weekend of August 10, 2018 and, thereafter, it marked a sequence of lower tops and lower bottoms. Recently, the stock had formed a reversal hammer candlestick pattern near the 200-week EMA. However, the stock has not given any significant upside as the volumes are low and oscillators are lying below 50. According to the MACD analysis on the weekly scale, there is centreline bearish crossover. Additionally, considering the weekly time frame, the stock is trading below Ichimoku cloud and Bollinger band average, which depicts negative momentum. We do not see any major reversal in the stock until it forms a sizeable bullish candle above the downward sloping trendline resistance, which is currently placed at Rs 63,500. Hence, we suggest you to avoid buying MRF at the current price and buy only above Rs 63,500 on a weekly closing basis.
APOLLO MICRO SYSTEMS LTD
CMP: Rs. 110.05
BSE Code: 540879
I have bought Apollo Micro System at an average price of Rs 346. Now the stock is trading at Rs 125. Please suggest what to do?
- Dipak Prajapati
EXIT APOLLO MICRO AT CURRENT MARKET PRICE
Apollo Micro Systems Ltd is currently trading at Rs 110.05. Its 52-week high/low stand at Rs 291/Rs 94.30 made on March 15, 2018 and February 18, 2019, respectively. After registering all-time high, the stock was seen tumbling with lower tops and lower bottoms. At present, the stock is trading below its crucial long term moving averages, i.e. 100-day EMA, 200-day EMA. The volumes are very low and momentum indicators on the weekly scale are lying below 50. According to the MACD analysis on the weekly scale, there is centreline bearish crossover. Additionally, considering the daily time frame, the stock is trading below Ichimoku cloud, which depicts negative momentum. Hence, we suggest you to exit Apollo at current market price.
SUNFLAG
CMP: Rs. 47.85
BSE Code: 500404
I had bought Sunflag Iron at Rs 71 recently. What is the near and long term outlook.?
- Nilu Bajoria
EXIT SUNFLAG AT CURRENT MARKET PRICE
Sunflag Iron & Steel Co Ltd is currently trading at Rs 47.85. Its 52-week high/low stand at Rs 93.75/Rs 40.55 made on April 19, 2018 and February 2, 2019, respectively. The stock had formed reversal shooting star candlestick pattern as on weekend of March 1, 2018, and thereafter, it marked a sequence of lower tops and lower bottoms. At present, the stock is trading below its 20-week EMA (52.40), 50-Week EMA (59.05), 100-week EMA (58.30) and 200-week EMA (50.15), which indicates a long term downtrend. However, the poor volumes and the 14-period weekly RSI quoting at 40.48 level depict lack of momentum for now. Additionally, the weekly MACD stays bearish as it is trading below its signal line. Hence, we suggest you to exit the stock at current market price.