Technical Portfolio Guide
V-GUARD INDUSTRIES LT
CMP: Rs. 227.55
BSE Code: 532953
I have entered V-Guard at Rs 220 for the short term. What do I do, exit at cost or wait for profit? - Samiran Pal
BOOK PROFIT AT THE CURRENT MARKET PRICE.
V-Guard Industries Ltd. is currently trading at Rs. 227.55. Its 52-week high/low stand at Rs 247/ Rs 159.10 made on June 4, 2019 and October 9, 2018, respectively. Considering the weekly time frame, the stock had given symmetrical triangle breakout as on weekend of May 31, 2019, and thereafter, it did not get any follow-up buying, and thereby the stock retraced almost 50 per cent of the recent upward move (Rs 198.10-Rs 247.35). Currently, the stock is trading below its weekly pivot and short term moving averages, i.e. 13-day EMA and 20-day EMA. The 14-period daily RSI is currently quoting at 47.53 and it is trading below its 9-day average, which suggests further downward momentum. The daily MACD is trading below its zero line for the past four trading sessions. The histogram is suggesting that the downward momentum is picking up. Moreover, the negative divergence is clearly visible between the daily RSI and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit in V-Guard at the current market price.
CADILA HEALTHCARE LTD.
CMP: Rs. 242.45
BSE Code: 532321
Can I buy shares of Cadila Healthcare as the stock has fallen a lot? - Taranpreet Singh
AVOID BUYING CADILA HEALTHCARE FOR NOW.
Cadila Healthcare Ltd. is currently trading at Rs. 242.45. Its 52-week high/low stand at Rs 432.40/Rs 231 made on September 10, 2018 and June 6, 2019 respectively. The stock I witnessed lower tops and lower bot toms after hitting all-time high. Thereafter, it gave a bump-and-run top reversal patterns breakdown at Rs 410 and gave almost continuous downfall with rising volumes, wherein the stock hit below its major support at Rs 330 and Rs 300 levels. Considering the daily time frame, it has recently given descending triangle breakout, which depicts further downward momentum. The stock is trading below its weekly pivot and short-long term moving averages. The leading indicator 14-period weekly RSI is currently quoting at 24.09 and it is in super bearish zone. The weekly MACD is trading below the zero line for the past 6 bars. The histogram is suggesting that the downward momentum is picking up. Considering all the above factors, we recommend you to avoid buying Cadila Healthcare Ltd for now.
STERLITE TECHNOLOGIES LTD
CMP: Rs. 176.00
BSE Code: 532374
I am holding 500 shares of Sterlite Technologies Ltd @ Rs 292 per share. It went to a low of Rs.143 and the CMP is Rs 192 (June 11, 2019) Please advise should I hold and what is future of the company? - G.L. Bhojwani
HOLD STERLITE TECH WITH STOP LOSS OF RS 143 ON A CLOSING BASIS.
Sterlite Technologies Ltd. is currently trading at Rs. 176.00. Its 52-week high/low stand at Rs 399/Rs 143.85 made on November 1, 2018 and May 24, 2019, respectively. The stock had formed bearish engulfing candle as on weekend of November 16, 2018 and, thereafter, it witnessed lower top and lower bottom. Considering the weekly time frame, near the horizontal support, the stock had formed reversal hammer candlestick pattern as on weekend of May 24, 2019, which is bullish in nature. With this, we are seeing falling wedge pattern in the making on the weekly scale. From the momentum indicators perspective, the 14-period weekly RSI is currently quoting at 33.22 and it is trading above its 9-week average. The weekly stochastic oscillator is suggesting some bullish strength as %K is above the %D. Moreover, the positive divergence is clearly visible between the weekly stochastic and the stock price movement, which suggests limited downside. However, in case the stock sustains above the upper trendline of falling wedge pattern, which is currently quoting at Rs 194 level, it may see fresh upward momentum. Considering all the above factors, we recommend you to hold Sterlite Tech with stop loss of Rs 143 on a closing basis.
ICICI LOMBARD GENERAL INSURANCE
CMP: Rs. 1162.90
BSE Code: 540716
I had 500 shares of ICICI Lombard purchased through IPO @ Rs 661. I had sold some shares at Rs 1195. I wish to again purchase the shares. Please advise when will be the correct time to enter - G.L. Bhojwani
AVOID BUYING ICICI LOMBARD FOR NOW.
ICICI Lombard General Insurance Company Ltd. is currently trading at Rs. 1162.90 Its 52-week high/low stand at Rs 1264.50/Rs 683 made on June 6, 2019 and June 29, 2018, respectively. The stock had given breakout of ascending triangle pattern on March 1, 2019 and, thereafter, it marked a sequence of gradual higher tops and higher bottoms. The stock had formed reversal bearish engulfing candlestick pattern as on weekend of June 14. The stock is trading below its weekly pivot and short term moving averages. The 14-period weekly RSI has recently given a negative crossover. The daily MACD is trading below the zero line for the past six trading sessions. The weekly stochastic oscillator is inclined southward, indicating further downside momentum. Moreover, the negative divergence is clearly visible between weekly stochastic and stock price movement, which suggests limited upside. Considering all above factors, we recommend you to avoid buying ICICI Lombard General Insurance for now.