Technical Portfolio Guide
JK PAPER LTD
CMP: Rs. 115.80
BSE CODE :532162
Shall I enter JK Paper at CMP for long term investment? - Ravinder Singh
AVOID BUYING JK PAPER FOR NOW
JK Paper Ltd. is currently trading at Rs. 115.80. Its 52-week high/low stand at Rs 193.95/Rs 109 made on August 21, 2018 and July 22, 2019, respectively. The stock had formed Adam and Adam double top pattern near all-time high level and, thereafter, it witnessed correction. Considering the weekly time frame, the stock had recently given a breakdown of 'bump and run' top reversal pattern, which indicates further downside momentum. The major trend of the stock is bearish as it is trading below its crucial long and short 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 37.60 and it is trading below its 9-week average. The MACD is trading below the zero line and signal line for the past seven weeks. The histogram is suggesting that the downside momentum is picking up. Moreover, the fast stochastic is also trading below its slow stochastic line. Considering all the above factors, we recommend you to avoid buying JK Paper for now.
NOCIL LTD
CMP: Rs. 92.80
BSE CODE :500730
Can I enter Nocil for the medium term as it has fallen considerably? - Chetan Reddy
AVOID BUYING NOCIL LTD FOR NOW.
NOCIL Ltd. is currently trading at Rs. 92.80. Its 52-week high/low stand at Rs 188/Rs 89.25 made on August 09, 2018 and July 24, 2019 respectively. The stock had formed Adam and Adam double top pattern near all time high level . With this the stock had formed bearish squeeze alert pattern as on weekend of May 04, 2018 and thereafter marked the sequence of lower tops and lower bottoms. Currently, the stock is trading below its 20-week EMA (121.95), 50-week EMA (139.10), 100-week EMA (141.60) and 200-week EMA (121.90), which indicates a medium-long term downtrend. After looking at the daily chart, it has been continuously trading below its 200-day EMA level from January. However, the volumes and oscillators are too poor to suggest any momentum. The 14-period weekly RSI is quoting around 27.57 and it was not able to cross the 60 mark since April 2018. The daily and weekly MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend you to avoid buying Nocil Ltd for now.
SBI LIFE INSURANCE COMPANY LTD
CMP: Rs. 797.80
BSE CODE :540719
I am holding shares of SBI Life at an average price of Rs 710. Should I continue to hold this scrip? - S. Bansode
HOLD WITH STOP LOSS OF RS 740 ON A CLOSING BASIS.
SBI Life Insurance Company Ltd. is currently trading at Rs. 797.80. Its 52-week high/low stand at Rs 808.10/Rs 487 made on July 24, 2019 and October 1, 2018, respectively. Considering the daily time frame, the stock had given downward sloping trendline breakout on April 26, 2019 and, thereafter, it had marked a sequence of higher tops and higher bottoms. 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-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator 14-period daily RSI is in bullish zone and it is trading above its 9-day average. The stochastic oscillator is also suggesting some bullish strength as %K is above the %D. The ADX is very strong at 37.70. The -DI is below the +DI and ADX is above the -DI and +DI. This shows the technical strength in the stock. Considering all above factors, we recommend you to hold SBI Life with stop loss of Rs 740 on a closing basis.
HDFC ASSET MANAGEMENT COMPANY LTD
CMP: Rs. 2091.80
BSE CODE : 541729
I am holding HDFC AMC at Rs 1860 for the short term. Should I hold or book profit? - Sharma A.
BOOK PROFIT IN HDFC AMC AT THE CURRENT MARKET PRICE.
HDFC Asset Management Company Ltd. is currently trading at Rs. 2091.80. Its 52-week high/low stand at Rs 2369.50/Rs 1248.30 made on July 19, 2019 and September 21, 2018, respectively. Considering the daily time frame, the stock had given horizontal trendline breakout on April 25, 2019 and, thereafter. it had marked a sequence of higher tops and higher bottom. The stock has recently managed to close below its weekly pivot and short term moving averages. Among the momentum indicators, the 14-period daily RSI cooled off after touching overbought zone and, at present, its reading is 55.82. The RSI is trading below its 9-day average and it is in a falling mode, which indicates further downside momentum. The fast stochastic is also trading below its slow stochastic line. Moreover, the negative divergence is clearly visible between the daily RSI, daily stochastic and stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit in HDFC AMC at the current market price.