Your Technical Portfolio Guide

CMI LTD. 

CMP: Rs53.35
BSE Code: 517330 

I have bought CMI Ltd. at an average price of Rs. 150. Now the stock is trading at Rs. 54. Please suggest what to do?
- Lion Ravichandran 

EXIT IN CMI LTD. AT CURRENT MARKET PRICE 

Currently, CMI Ltd. is trading at Rs. 53.35. Its 52-week high/low stand at Rs. 185.30/Rs 50.55 made on January 02, 2019 and August 22, 2019, respectively. The stock formed a bearish Belt-hold like candlestick pattern on the weekend of May 04, 2018, and thereafter, marked the sequence of lower tops and lower bottoms. Predominantly, the stock is displaying a bearish trend as it is trading below its weekly pivot and short-long-term moving averages, that is, 20-week EMA, 50-week EMA, 100-week EMA, and 200-Week EMA. If we look at the daily chart, the stock has continuously been trading below its 200-day SMA level since June 2018. The poor volumes and the 14-period weekly RSI, quoting at 34 levels, depict a lack of momentum for now. The weekly RSI is not able to cross the 60 mark since May 2018. The stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. Considering all the above factors, we recommend an exit in CMI Ltd. at the current market price.

PFIZER LTD. 

CMP: Rs4292
BSE Code: 500680 

I have bought 50 shares of Pfizer at Rs. 3,800 for the medium term. Considering the current situation, what would you suggest?
- Jagdish Todi 

HOLD PFIZER WITH STOP LOSS OF RS. 4,070 ON CLOSING BASIS 

Pfizer Ltd. is currently trading at Rs. 4,292. Its 52-week high/low stand at Rs. 4,498/Rs. 2,640, made on December 04, 2019, and January 17, 2019, respectively. The stock had given a breakout of horizontal trendline as on the weekend of October 27, 2019, and bounced sharply up to its all-time high level after that. If we look at the daily timeframe, we can see that the stock had recently given a breakout of a bullish Flag pattern along with strong volumes, which indicates a further upside move. The key trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, that is, 20-day, 50-day, 100-day, and 200-day EMAs. These moving averages are exactly in ascending order, which suggests that the trend is strong. The leading indicator, 14-period RSI, is in the super bullish zone in both, weekly and daily timeframes. The weekly MACD is bullish as it is trading above its zero lines and the signal line. Moreover, the other volume-based indicators, such as OBV and Money Flow Index, are also very strong. Considering all the above factors, we recommend you hold Pfizer with a stop loss of Rs. 4,070 on a closing basis as it is the confluence of the upward sloping trendline support and the 20-day EMA level.

ADHUNIK INDUSTRIES LTD 

CMP: Rs66.40
BSE Code: 538365 

I bought Adhunik Industries at Rs 55 and holding it currently. What should be my next step?
-Dilipkumar Jadhav 

BOOK PROFIT IN ADHUNIK INDUSTRIES AT CURRENT MARKET PRICE 

Adhunik Industries Ltd. is trading at Rs. 66.40 at present. Its 52-week high/low stand at Rs. 127/Rs. 37.20 made on November 01, 2019, and February 20, 2019, respectively. The stock had formed a reversal hammer candlestick pattern as on the weekend of February 22, 2019, and marked the sequence of higher tops and higher bottoms. The daily timeframe shows that the stock had recently given a neckline breakdown of Adam and Adam's Double Tops pattern, which indicates a correction before another upward rally. With this neckline breakdown, the stock has also managed to close below its short-and long-term moving averages, that is, 20-day EMA, 50-day EMA, 100-day EMA, and 200-day EMA. Among the momentum indicators, the 14-period weekly RSI is quoting at 22.48, currently, and it is trading below its 9-week average. Interestingly, the 14-period weekly RSI has also given a neckline breakdown of the double top pattern. The momentum indicator, weekly MACD line, has just passed below the signal line, resulting in the histogram turning negative. Taking all the above factors into consideration, we recommend you to book profit in Adhunik Industries at the current market price.

LARSEN & TOUBRO LTD 

CMP: 1301.65
BSE Code:500510 

I am thinking of entering LT for medium-term investment. What is your take on it?
- Binay Bhusan 

AVOID BUYING LARSEN & TOUBRO FOR NOW 

Currently, Larsen & Toubro Ltd is trading at Rs. 1301.65. Its 52-week high/low stand at Rs. 1,606.70/Rs. 1,202.30, made on May 28, 2019, and February 14, 2019, respectively. The stock is trading 'Rising Channel' since April 2011. It formed a reversal Spinning top like candlestick pattern near the upper trendline of the Rising Channel as on the weekend of May 31, 2019, and witnessed correction afterward. From the weekly timeframe, we can see that the stock had formed reversal Head and Shoulder like pattern. It is hovering around the neckline of the pattern, at present, and trading below its 20-week EMA (1391.70), 50-week EMA (1385.25), and 100-week EMA (1337.95), suggesting a medium-long term downtrend. The leading indicator, 14-period weekly RSI, is quoting at 37.89 and is trading below its 9-week average. The stochastic oscillator is also suggesting some bearish momentum as %K is below the %D. Moreover, the daily and weekly MACD is bearish as it is trading below its zero lines and the signal line. Looking at all the above factors, we recommend you to avoid buying Larsen & Toubro for now.