Technical Portfolio Guide

SBI LIFE INSURANCE COMPANY LTD
CMP: Rs.800.05
BSE Code: 540719

I have bought shares of SBI Life Insurance Company at Rs 760, Should I hold or book profits? - Chandramouli A

BOOK PROFIT IN SBI LIFE AT THE CURRENT MARKET PRICE.

SBI Life Insurance Company Ltd is currently trading at Rs. 800.05. Its 52-week high/low stand at Rs 862.40/Rs 487 made on August 20, 2019 and October 1, 2018, respectively. The stock had given inverted head and shoulders- like pattern breakout as on weekend of April 5, 2019 and, thereafter, it had marked a sequence of higher tops and higher bottoms. Recently, the stock has formed reversal spinning top candlestick pattern as on weekend of August 23, 2019. The spinning top candlestick pattern is considered to be a bearish reversal pattern and usually occurs at the top of an uptrend. From the momentum indicators perspective, the 14-period weekly RSI is currently quoting at 62.36 and it is trading below its 9-week average. The weekly stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. Moreover, the negative divergence is clearly visible between the weekly RSI, weekly stochastic and stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit in SBI Life Insurance Company at the current market price.

ALLAHABAD BANK
CMP: Rs.33.50 
BSE Code: 532480

Can I buy Allahabad Bank as it has fallen tremendously? - Neha Dalal

AVOID BUYING ALLAHABAD BANK FOR NOW. 

Allahabad Bank Ltd is currently trading at Rs. 33.50. Its 52-week high/low stand at Rs 58.80/Rs 30 made on March 11, 2019 and August 23, 2019, respectively. The stock had given breakdown of upward sloping trendline as on weekend of February 2, 2018 and, thereafter, it had marked a sequence of lower tops and lower bottoms. Currently, the stock is trading below its 20-week EMA (40.05), 50-week EMA (43.95), 100-week EMA (49.45) and 200-week EMA (61.10), which indicates a medium-long term downtrend. The leading indicator 14-period weekly RSI is currently quoting at 37.56 and trading below its 9-week average. On the weekly chart, the MACD is trading below zero line for 19 weeks and below the signal line for 15 weeks. Moreover, considering the weekly time frame, the stock is trading below the lower Bollinger band average and Ichimoku cloud. Considering all the above factors, we recommend you to avoid buying Allahabad Bank for now.

HCL TECHNOLOGIES LTD
CMP: Rs.1057.25
BSE Code: 532281

I am holding 50 shares of HCL Tech bought at an average price of Rs 1045. Kindly advise me on what will be the price movement in the short term. - Mohan Agrawal 

BOOK PROFIT IN HCL TECH AT THE CURRENT MARKET PRICE

HCL Technologies Ltd is currently trading at Rs 1057.25. Its 52-week high/low stand at Rs 1190/Rs 920.15 made on April 30, 2019 and January 11, 2019, respectively. Considering the daily time frame, the stock had given breakout of falling wedge pattern on August 6, 2019, and, thereafter, it gave a gradual bounce up to the level of Rs 1130.60. Recently, the stock had formed reversal 'three black crows' candlestick pattern, which usually indicates a weakness in an established uptrend and the potential emergence of a downtrend. The short term trend is bearish, as the stock is trading below its weekly pivot and below the short term moving averages, i.e. 13-day EMA, 20-day EMA and 50-day EMA. Among the momentum indicators, the 14-period daily RSI is currently quoting at 43.79 and trading below its 9-day average. The stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. The daily MACD stays bearish as it is trading below its zero line. Moreover, there has been a negative divergence between the daily RSI, daily stochastic and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit in HCL Technologies at the current market price.

PI INDUSTRIES LTD
CMP: Rs.1266.55
BSE Code: 523642

I am holding shares of PI Industries at an average price of Rs 880. Should I continue to hold this scrip? - Rohan Batra 

HOLD PI INDUSTRIES WITH STOP LOSS OF RS 1120 ON A WEEKLY CLOSING BASIS. 

PI Industries Ltd is currently trading at Rs. 1266.55. Its 52-week high/low stand at Rs 1298/ Rs 691.80 made on September 11, 2019 and October 1, 2018, respectively. The stock had formed reversal bullish engulfing candle as on weekend of November 2, 2018 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-week, 50-week, 100-week and 200-week EMAs 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 72.81 and it is in super bullish zone. The weekly stochastic oscillator is also suggesting some bullish strength as %K is above the %D. Moreover, the daily MACD is above the zero line and signal line. The histogram is suggesting that the momentum is picking up. Considering all the above factors, we recommend you to hold PI Industries with stop loss of Rs 1120 as it is the confluence of 20-week EMA and upward sloping trendline support.