Technical Portfolio Guide
INTELLECT DESIGN ARENA LTD
CMP: Rs. 264.50
BSE Code: 538835
I am holding Intellect Design Arena bought at Rs 210. What should I do now?
- Amit Kumar
HOLD INTELLECT DESIGN WITH STOP LOSS OF RS 240 ON A CLOSING BASIS.
Intellect Design Arena Ltd. is currently trading at Rs. 264.50. Its 52-week high/low stand at Rs 283.20/Rs 151.10 made on September 14, 2018 and February 18, 2019, respectively. The stock, after registering low of Rs 96.50 in August 2017, rallied all the way to the level of Rs 283.70 in September 2018. Thereafter, the stock witnessed double top and entered into corrective phase. After taking support near its multiple support zone of Rs 155-150, the stock bounced back and faced resistance around its 52-week high level. This led to formation of a downward sloping trendline. Currently, the major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages. The 14-period weekly RSI is currently quoting at 67.60 and it is in a rising trajectory. The weekly MACD stays bullish as it is trading above its zero line and signal line, which suggests a bullish bias. In case the stock sustains above its downward sloping trendline resistance, which is currently quoting in the zone of Rs 275-280 level, it can see a good upmove. While on the downside, the stock has strong support in the zone of Rs 242-240 as the upward sloping trendline is placed in that region. Hence, we suggest you to hold Intellect with a stop loss of Rs 240 on a closing basis.
DEEPAK NITRITE LTD
CMP: Rs. 280.50
BSE Code: 506401
I had purchased Deepak Nitrite at the breakout level of Rs 300, but it turned back after hitting Rs 337. I am still holding. What to do?
- Narasimhan S.
EXIT AT THE CURRENT MARKET PRICE
Deepak Nitrite Ltd is currently trading at Rs 280.50. Its 52-week high/low stand at Rs 337.55/Rs 204.60 made on June 6, 2019 and December 26, 2018, respectively. The stock has given horizontal trendline breakout as on weekend of May 31, 2019 and marked high of Rs 337.95. Recently, the stock had formed reversal shooting star candlestick pattern as on weekend of June 7, 2019, which is bearish in nature and gave confirmation in the current week. With this, the stock has also managed to close below its weekly pivot and short term moving averages, i.e. 13-day, 20-day and 50-day EMAs. The negative crossovers on the weekly and daily RSI indicate that further decline is on the cards. Moreover, the negative divergence is clearly visible between weekly RSI, weekly stochastic and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to exit Deepak Nitrite at the current market price.
PRIME FOCUS LTD
CMP: Rs. 52.55
BSE Code: 532748
Can I enter Prime Focus at the current levels?
- Virendra
AVOID BUYING PRIME FOCUS FOR NOW.
Prime Focus Ltd. is currently trading at Rs. 52.55. Its 52-week high/low stand at Rs 97/Rs 43.40 made on August 23, 2018 and February 6, 2019, respectively. The stock had formed bearish engulfing candle as on weekend of January 12, 2018 and, thereafter, it made 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, 50-week, 100-week and 200-week EMAs. The lower volumes and oscillators still tilted southward point to some more downside for now. From the momentum indicators perspective, the 14-period weekly RSI is currently quoting at 40.43 and it was not able to cross the 60 mark since January 2018. Additionally, the Ichimoku on the weekly and daily time frame is clearly giving a negative view as it closed below the KS and TS lines. Considering all the above factors, we recommend you to avoid buying Prime Focus Ltd for now.
GAIL (INDIA) LTD
CMP: Rs. 308.15
BSE Code: 532155
Can I buy shares of GAIL at the current levels?
- Sunil Joshi
AVOID BUYING GAIL FOR NOW.
Gail (India) Ltd. is currently trading at Rs. 308.15. Its 52-week high/low stand at Rs 398.80/Rs 296 made on August 16, 2018 and October 5, 2018, respectively. The stock has given downward sloping trendline breakout as on weekend of May 31, 2019 and, thereafter, it did not get any follow-up buying, which resulted in breakout failure and, thereby, a sharp fall. Currently, the stock is trading below its weekly pivot and short-long term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. The leading indicator 14-period weekly RSI is currently quoting at 38.63 and it is in a sideways range. The weekly MACD stays negative as it is trading below the zero line. The fast stochastic is also trading below its slow stochastic, which depicts further decline is on the cards. Additionally, The Ichimoku chart on the daily and 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 avoid buying Gail (India) for now.