Technical Portfolio Guide

GREAVES COTTON LTD 

CMP: Rs. 149.40 
BSE Code: 501455

I wish to buy Greaves Cotton. Is it a good time to enter the stock?
 - Akshat Chhajed

BUY GREAVES COTTON ONLY ABOVE RS 152 ON A CLOSING BASIS.

Greaves Cotton Ltd. is currently trading at Rs. 149.40. Its 52-week high/low stand at Rs 165/Rs 111.10 made on Sept 4, 2018 and October 24, 2018, respectively. The stock had formed reversal bearish engulfing candle as on weekend of May 5, 2017 and, thereafter, it entered into corrective phase. The correction was halted in-between the 50 per cent and 61.8 per cent retracement of the upward rally from Rs 57.25 to its all-time high level. The major trend of the stock is bullish as it is trading above its weekly pivot and short-long term moving averages. The golden crossover happened 11 weeks back. Among the momentum indicators, the 14-period weekly RSI and weekly stochastic have recently given positive crossover, which indicates further upward momentum. However, at present, the stock is currently hovering around a key resistance level as defined by the downward sloping trendline. For further upside, the stock needs to form a sizeable bullish candle above the trendline resistance, which is currently quoting at Rs 152 level. Hence, we suggest you to buy Greaves Cotton only above Rs 152 on a closing basis.

LAKSHMI VILAS BANK LTD

CMP: Rs. 74.40 
BSE Code: 534690

I have purchased Lakshmi Vilas Bank Ltd @ Rs 83.50. The stock has reversed now. Should I exit? 
- Bijoy Madakkuni

EXIT LAKSHMI VILAS AT THE CURRENT MARKET PRICE.

Lakshmi Vilas Bank Ltd. is currently trading at Rs. 74.40. Its 52-week high/low stand at Rs 121.75/Rs 54.80 made on June 21, 2018 and February 25, 2019, respectively. The stock had formed reversal shooting star candlestick pattern as on weekend of July 14, 2017 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, i.e. 20-week EMA, 50-week EMA, 100-week EMA and 200-week EMA. The lower volumes and the oscillators still tilted southward point to some more downside for now. The leading indicator 14-period weekly RSI is currently quoting at 45.76 and it is trading below its 9-week average. 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.

CONTAINER CORPORATION OF INDIA LTD

CMP: Rs. 531 
BSE Code: 531344

I have purchased 750 shares of Container Corporation of India for the long term at an average price of Rs 480. Should I book profits or hold these for some more time?
 - Devendra Patel

HOLD WITH STOP LOSS OF RS 460 ON A CLOSING BASIS

Container Corporation of India Ltd. is currently trading at Rs. 531. Its 52-week high/low stand at Rs 563.20/Rs 433.16 made on January 16, 2019 and October 25, 2019, respectively. The stock had formed reversal shooting star candlestick pattern as on weekend of June 5, 2015 and, thereafter, it entered into the contracting consolidation. Recently, the stock had formed reversal spinning bottom pattern near the long term support zone and has initiated its northward move. The major trend of the stock is bullish as it is trading above its weekly pivot and short-long term moving averages. The 14-period weekly RSI is currently quoting at 55.49 and it is trading above its 9-week average, which indicates further upward momentum. The fast stochastic on the weekly scale is also trading above its slow stochastic line. The weekly and daily MACDs stay bullish as these are trading above the zero line. The stock has a resistance around the level of Rs 545, and if it manages to close above this level, it can see a good upmove. While on the downside, the stock has strong support in the zone of Rs 470-460 as it is the confluence of upward sloping trendline support and long term 200-day EMA level. Hence, we suggest you to hold Container Corporation of India with a stop loss of Rs 460 on a closing basis.

ICICI LOMBARD GEN. INS. CO. LTD.

CMP: Rs. 1146.85 
BSE Code: 540716

I am holding ICICI Lombard General Insurance at Rs 1050. Should I continue holding the stock or book profit?
 - Hitesh Bansal

BOOK PROFIT IN ICICI GENERAL INSURANCE AT THE CURRENT MARKET PRICE.

ICICI Lombard General Insurance Company Ltd. is currently trading at Rs. 1146.85. Its 52-week high/low stand at Rs 1243/Rs 683 made on May 28, 2019 and June 29, 2018, respectively. Considering the daily time frame, the stock had given breakout of ascending triangle pattern on March 1, 2019, along with average volumes, and thereafter, it had marked the sequence of 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, the 14-period RSI is currently quoting at 57.40 and it has recently given negative crossover, which depicts further downward momentum in the stock. The fast stochastic is also trading below its slow stochastic line. Additionally, the negative divergence is clearly visible between daily RSI and stochastic and the stock price movement, which suggest limited upside. Considering all these factors, we recommend you to book profit in ICICI General Insurance at the current market price.