Technical Portfolio Guide
JAIN IRRIGATION SYSTEMS LTD
CMP: Rs. 59.65
BSE Code: 500219
Can I buy Jain Irrigation at the current level?
- Mahendra Patel
AVOID BUYING JAIN IRRIGATION FOR NOW.
Jain Irrigation Systems Ltd. is currently trading at Rs 59.65. Its 52-week high/low stand at Rs 118/Rs 49 made on May 2, 2018 and February 13, 2019, respectively. The stock had formed bearish engulfing candle as on weekend of February 2, 2018, and thereafter, it marked a sequence of lower tops and lower bottoms. The major trend of the stock is negative as it is trading below its weekly pivot and short-long term moving averages. The poor volumes and oscillators lying below 50 depict lack of momentum in the stock. The Ichimoku chart on the weekly time frame is clearly giving a negative view as it closed below the KS and TS lines. The Average Directional Index (ADX) is currently quoting at 7.80 and the directional parameter -DI is below ADX and +DI, which suggest a negative bias. Considering all above factors, we suggest you to avoid buying Jain Irrigation for now.
UNITED BREWERIES LTD
CMP: Rs. 1449.30
BSE Code: 532478
I have bought United Breweries Ltd at Rs 1350 level for long term. What should be my next action?
- Salve
HOLD WITH STOP LOSS OF RS 1270 ON A WEEKLY CLOSING BASIS.
United Breweries Ltd. is currently trading at Rs 1449.30. Its 52-week high/low stand at Rs 1493.75/Rs 1029.60 made on January 21, 2019 and July 19, 2018, respectively. After registering 52-week low, the stock is trading with slightly similar tops and higher bottoms. Since last six weeks, the stock has been hovering around the horizontal trendline resistance. Considering the weekly time frame, the major trend of the stocks is positive as it is trading above all the short and long term moving averages and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The 14-period weekly RSI is currently quoting at 62.08 and it is trading above its 9-week average. The weekly fast stochastic is also trading above its slow stochastic line. Moreover, the stock is trading above its weekly and daily Ichimoku cloud. In case the stock sustains above the horizontal trendline resistance, which is currently placed at Rs 1470, we may see another upside rally. Hence, we suggest you to hold UBL with stop loss of Rs 1270 on a weekly closing basis, where the upward sloping trendline support is placed and which coincides with 50-week EMA.
GODFREY PHILLIPS INDIA LTD
CMP: Rs. 1127.15
BSE Code: 500163
I had bought shares of Godfrey Phillips at Rs 1000 after a breakout. What should I do now?
- Rakesh J.
BOOK PROFIT AT CURRENT MARKET PRICE.
Godfrey Phillips India Ltd. is currently trading at Rs.1127.15. Its 52-week high/low stand at Rs 1209/Rs 640.45 made on April 15, 2019 and October 8, 2018, respectively. The stock witnessed a horizontal trendline breakout at Rs 1000 level on March 11, 2019, and thereby, it surged up to Rs 1207.75. Considering the weekly time frame, the stock had formed a reversal shooting pattern on April 18, 2019, and gave the confirmation next week. The daily RSI is currently quoting at 51.72 and it is trading below its 9-day average. The fast stochastic is also trading below its slow stochastic line. The daily MACD stays negative as it is trading below the zero line. Additionally, there has been negative divergence between the daily RSI, daily stochastic and the stock price movement, which suggest limited upside. Considering all the above factors, we suggest you to book profit at current market price.
ALICON CASTALLOY LTD
CMP: Rs. 642.65
BSE Code: 531147
Can I enter Alicon Castalloy at the current levels for averaging my position?
-Yashovardhan M.
BUY ALICON ONLY ABOVE RS 662 ON A WEEKLY CLOSING BASIS.
Alicon Castalloy Ltd. is currently trading at Rs 642.65. Its 52-week high/low stand at Rs 749.90/Rs 510 made on September 10, 2018 and February 15, 2019, respectively. After registering all-time high, the stock entered into corrective phase. The correction was halted near 50 per cent retracement of its prior upward move. The stock is trading in falling channel since January 12, 2018, and at present, the stock is near the upper trendline of the falling channel. The major trend of the stock is still positive as it is trading above its weekly pivot and short-long term moving averages. The 14-period weekly RSI is currently quoting at 60.48 and it is trading above its 9-week average. The momentum indicator MACD is also trading above the zero line for the past six weeks. In case the stock sustains above the upper trendline of the falling channel resistance, which is currently placed at Rs 662, we may see an upside rally. Hence, we suggest you to buy Alicon Castalloy Ltd above Rs 662 on a weekly closing basis.