Technical Portfolio Guide
VARDHMAN HOLDING LTD
CMP:Rs. 2100
BSE Code:500439
I have bought Vardhman Holding at Rs 2450. However, the stock is not ready to move. What should I do?
- Gurumurthy
EXIT VHL AT THE CURRENT MARKET PRICE.
Vardhman Holding Ltd. is currently trading at Rs. 2100. Its 52-week high/low stand at Rs 3600/Rs 1608 made on May 23, 2018 and February 22, 2019 respectively. The stock had formed bearish three black crows pattern started as on weekend of January 19, 2018, and, thereafter, it made a sequence of lower tops and lower bottoms. At present, the stock is trading below its crucial long and short term moving averages, i.e. 20-week EMA, 50-week EMA, 100-week EMA and 200-week EMA. The lower volumes and oscillators still tilted southward point to some more downside for now. From a momentum indicators perspective, the 14-period weekly RSI is currently quoting at 42.81 and it was not able to cross the 60 mark since January 2018. Additionally, The Ichimoku on the weekly time frame is clearly giving a negative view as it closed below the KS and TS lines. Considering all above factors, we recommend you to exit at the current market price.
ADANI TRANSMISSION LTD
CMP:Rs. 224.10
BSE Code: 539254
I wish to buy Adani Transmission for the long term. Is it a good time to enter the stock?
- Venkata Reddy
BUY ADANI TRANSMISSION ONLY ABOVE RS 245 ON A CLOSING BASIS.
Adani Transmission Ltd. is currently trading at Rs. 224.10. Its 52-week high/low stand at Rs 256.30/Rs 115 made on November 28, 2018 and May 24, 2018, respectively. The stock had formed dragonfly Doji candle as on weekend of May 25, 2018 and, thereafter, it marked a sequence of almost similar tops and higher bottoms. The major trend of the stock is positive as it is trading above its weekly pivot and above its long and short term moving averages, i.e. 20-week, 50-week and 100-week EMA and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator 14-period weekly RSI is currently quoting at 57.03 and it has recently given positive crossover, which depicts further upward momentum. Additionally, on the daily time frame, the stock is trading above its Ichimku cloud and Bollinger band average level. However, for any further upward momentum, the stock needs to form a sizeable bullish candle above the horizontal trendline resistance, which is currently placed at Rs 245, along with strong volumes. Hence, we suggest you to buy Adani Transmission only above Rs 245 on a closing basis, if volumes support.
TRIGYN TECHNOLOGIES LTD
CMP:Rs. 69.20
BSE Code:517562
Can I enter Trigyn as it has fallen considerably?
- Purvesh Mehta
AVOID BUYING TRIGYN FOR NOW.
Trigyn Technologies Ltd. is currently trading at Rs. 69.20. Its 52-week high/low stand at Rs 147.15/Rs 63.10 made on June 14, 2018 and February 14, 2019 respectively. The stock had formed reversal 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 bearish as it is trading below its short and long term moving averages and a death crossover happened seven weeks back. The volumes are very low and oscillators are lying below 50 and are tilted southwards, which indicate further downward momentum. The leading indicator 14-period weekly RSI is currently quoting at 41 and it was not able to cross the 60 mark since January 25, 2018. At present, the stock is hovering around the horizontal trendline support zone of Rs 63-Rs 62, and in case the sustain below this zone, it may extend its downmove. Hence, we suggest you to avoid buying Trigyn for now.
DCB BANK LTD
CMP:Rs. 228
BSE Code: 532772
I have purchased 750 shares of DCB Bank Ltd for the short term at an average price of Rs 210. Should I book profits or hold these for some more time?
- Ritu Parna Borah
BOOK PROFIT IN DCB BANK AT THE CURRENT MARKET PRICE.
DCB Bank Ltd. is currently trading at Rs. 228. Its 52-week high/low stand at Rs 234/Rs 139.50 made on May 20, 2019 and October 1, 2018, respectively. The stock had given horizontal trendline breakout on April 24, 2019, and since then, it is trading with gradual higher tops and higher bottoms. The major trend of the stock is positive as it is trading above its weekly pivots and above its long and short term moving averages. However, on May 23, 2019, the stock had formed reversal shooting star like pattern. The leading indicator RSI is currently quoting at 68.32 and it has given negative crossover, which indicate that further decline is on the cards. The fast stochastic is also trading below its slow stochastic. Additionally, the negative divergence is clearly visible between the daily RSI and stochastic and the stock price movement, which suggest limited upside. Considering all above factors, we recommend you to book profit in DCB Bank at the current market price.