Technical Portfolio Guide

UNICHEM LABORATORIES LTD

CMP: Rs. 190
BSE Code: 506690

I am holding Unichem Laboratories Ltd bought at Rs 210 in March expecting it to bounce back, but it fell more. What should I do?
- Shanmugapriya D

EXIT UNICHEM LABS BELOW RS 185 ON A WEEKLY CLOSING BASIS.

Unichem Laboratories Ltd. is currently trading at Rs 190. Its 52-week high/low stand at Rs 289 /Rs 182 made on May 3, 2018, and October 11, 2018, respectively. The stock has been trading with lower tops and lower bottoms since its all-time high level, where it had formed a reversal bearish engulfing pattern as on weekend of February 16, 2018. The major trend of the stock is negative as it is trading below its weekly pivot and above its crucial long and short term moving averages, i.e. 20-week EMA, 50-week EMA, 100-week EMA and 200-week EMA. The poor volumes and 14-period weekly RSI quoting at the 38.89 level depict lack of momentum for now. The daily Average Direction Index (ADX) is currently quoting at 11.08, which suggests lack of momentum. Since last seven months, the stock is hovering around upward sloping trendline support, which is currently placed at Rs 185. In case the stock sustains below this level, it may extend its downmove. Hence, we suggest you to exit below Rs 185 on a weekly closing basis.

AIA ENGINEERING LTD

CMP: Rs. 1770
BSE Code: 532683

I am planning to buy shares of AIA Engineering Ltd. Is this the right time to invest in this stock? Please advise.
 - Mohan Jhamnani

BUY AIA ENGG ONLY ABOVE RS 1850 ON A CLOSING BASIS.

AIA Engineering Ltd. is currently trading at Rs.1770. Its 52-week high/low stand at Rs 2026/Rs 1398.95 made on March 11, 2019 and May 4, 2018, respectively. Since last 45 weeks, the stock is trading in an ascending triangle pattern and, at present, it is hovering around the upper trendline of the ascending triangle. The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-week, 50-week, 100-week and 200-week EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator RSI on the weekly scale is currently quoting at 54.63. The weekly MACD stays bullish as it is trading above the zero line and the signal line. For further upward move, the stock needs to form a sizeable bullish candle above the upper trendline of ascending triangle, which is currently placed around Rs 1,850. Hence, we suggest you to buy AIA Engineering above Rs 1,850 on a closing basis.

ULTRATECH CEMENT LTD 

CMP: Rs. 4623.40
BSE Code: 532538

I have purchased 100 shares of Ultratech Cement at an average price of Rs 4,020 for the long term. Should I book profit or hold these shares for some more time?
- Sachin N.

HOLD ULTRATECH CEMENT WITH STOP LOSS OF RS 4200 ON A CLOSING BASIS.

Ultratech Cement Ltd. is currently trading at Rs 4,623.40. Its 52-week high/low stand at Rs 4686.30/Rs 3263.70 made on April 25, 2019 and October 23, 2018, respectively. The stock had witnessed double bottom pattern as on weekend of February 1, 2019 and, thereafter, it marked a sequence of higher tops and higher bottoms. Recently, the stock had given a multiple touch points downward sloping trendline breakout at Rs 4,350, along with strong volumes. The stock is trading much above its 20-day, 50-day, 100-day and 200-day EMAs. The leading indicator RSI is in super bullish zone and the MACD is also trading above the zero line and signal line. The ADX is very strong at 49.55. The -DI is much below the +DI and ADX is above the -DI and +DI. This shows the technical strength in the stock. Moreover, the other volume- based indicators like OBV and Money Flow Index are also very strong. In the near term, the zone of Rs 4225-4200 is likely to act as major support as it is the confluence of 20-day SMA and upward sloping trendline support. Hence we suggest you to hold Ultratech Cement Ltd with stop loss of Rs 4200 on a closing basis.

BAJAJ FINSERV LTD

CMP: Rs. 7575
BSE Code: 532978

I bought Bajaj Finserv at Rs 7080 for the short term. Should I wait or book profit?
 -Pradeep Govind

BOOK PROFIT IN BAJAJ FINSERVE AT THE CURRENT MARKET PRICE.

Bajaj Finserv Ltd is currently trading at Rs.7575. Its 52-week high/low stand at Rs 7740.40/Rs 4960 made on April 30, 2019 and October 24, 2018, respectively. The stock had given downward sloping trendline breakout at Rs 6320 as on weekend of March 1, 2019 and, thereafter, it marked a sequence of higher tops and higher bottoms. However, the stock had formed reversal bearish engulfing candle on April 30, 2019, along with relatively higher volumes. The leading indicator RSI is currently quoting at 62.73 and it has recently given bearish crossover. The fast stochastic is also trading below the slow stochastic and the daily MACD stays bearish as it is trading below zero line since last six trading sessions. Moreover, there has been a negative divergence between the daily stochastic and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit at the current market price.