Your Technical Portfolio Guide

APOLLO HOSPITALS ENTERPRISE LTD. 

CMP: Rs 1383.70
BSE Code: 508869 

I have bought shares of Apollo Hospitals at Rs 1,275 for short term, Should I hold or book profits?
- Athri Bhat 

BOOK PROFIT IN APOLLO HOSPITALS AT CURRENT MARKET PRICE 

Apollo Hospitals Enterprise Ltd. is currently trading at Rs 1,383.70 Its 52-week high/low stand at Rs 1,574.95/Rs 1,083 made on September 12, 2019 and February 18, 2019 respectively. The stock had given neckline breakout of double bottom pattern as on weekend of August 17, 2018 and thereafter marked the sequence of higher tops and higher bottoms. Considering the daily time frame, recently, the stock had given breakdown of symmetrical triangle pattern, which indicates correction before another upside rally. The short-term trend is negative as it is trading below its weekly pivot and below its short term moving averages, i.e. 20-day EMA, 50-day EMA and 100-day EMA. From the momentum indicators perspective, the 14-period daily RSI is currently quoting at 41.85 and it has recently given negative crossover. The momentum indicator daily MACD line has crossed under the signal line, which resulted in the histogram turning negative. Moreover, on the directional index, the bearish strength is higher than the bullish strength as +DI is trading much below the -DI. Considering all the above factors, we recommend you to book profit in Apollo Hospitals at current market price.

GAIL(INDIA) LTD. 

CMP: Rs 118.80
BSE Code: 532155 

Shall I enter Gail as it has fallen drastically in the last couple of weeks?
- Jayesh Ruparel 

AVOID BUYING GAIL (INDIA) FOR NOW 

Gail (India) Ltd. is currently trading at Rs 118.80. Its 52-week high/low stand at Rs 183.20/ Rs 110.55 made on March 19, 2019 and December 10, 2019 respectively. The stock witnessed lower tops and slightly similar bottoms after hitting an all-time high. Thereafter, it gave a multiple point upward sloping trendline breakdown at Rs 158 and gave almost continuous downfall with relatively higher volumes where the stock hit below its major support at Rs 140 and Rs 120 levels. Currently, the stock is trading below its 20-week EMA (130.25), 50-week EMA (144.40), 100-week EMA (151.40) and 200-week EMA (146.35), which indicates a medium-long term downtrend. Among the momentum indicators, the 14-period weekly RSI is currently quoting at 37.89. The RSI is trading below its 9-week average and it is in falling mode, which indicates further downside momentum. The weekly RSI is not able to cross 60-mark since September 2018. The weekly MACD stays bearish as it is trading below its zero line. Moreover, other oscillators and indicators are also tilted southward towards down for now. Hence, we recommend you to avoid buying Gail (India) for the time being.

HERO MOTOCORP LTD. 

CMP: Rs 2334.10
BSE Code: 500182 

I have bought 30 shares of Hero MotoCorp at Rs 2,600. Is it a stock to hold for the short-term for better returns (3 months) or would it be better to sell?
- Dharmesh Patwa 

EXIT HEROMOTOCO BELOW RS 2,200 ON CLOSING BASIS 

Hero MotoCorp Ltd. is currently trading at Rs 2,334.10. Its 52-week high/low stand at Rs 3,382.70/Rs 2,228.25 made on December 20, 2018 and July 31, 2019 respectively. The stock had formed reversal identical three crows candlestick pattern as on weekend of September 22, 2017 and thereafter, marked the sequence of lower tops and lower bottoms. Majorly, the stock is displaying a bearish trend as it is trading below its weekly pivot and short-long term moving averages. The leading indicator, 14-period weekly RSI is currently quoting at 36.35 and it is trading below its 9-week average. The weekly and daily MACD stays bearish as it is trading below its zero line and signal line. The histogram is suggesting that the downside momentum is picking up. Moreover, on the directional index, the bearish strength is higher than the bullish strength as +DI is trading much below the -DI on both weekly and daily time frame. In case the stock sustains and close below the level of Rs 2,200 then, it may extend its southward journey. Considering all the above factors, we recommend you to exit in Hero MotoCorp below Rs 2,200 on closing basis.

DIVI’S LABORATORIES LTD. 

CMP: 1825.00
BSE Code: 532488 

I am holding 50 shares of Divi’s Lab. Bought at an average price of Rs 1,565. Kindly advise me as to what the price movement will be in the long-term.
- Ashish Sharma 

HOLD DIVI’S LAB. WITH THE STOP-LOSS OF RS 1,680 ON CLOSING BASIS 

Divi’s Laboratories Ltd. is currently trading at Rs 1,825.00. Its 52-week high/low stand at Rs 1,840.20/Rs 1,428 made on December 12, 2019 and December 26, 2018 respectively. The stock had formed reversal bullish engulfing candlestick pattern as on weekend of June 02, 2017 and thereafter, marked the sequence of higher tops and higher bottoms. Recently, the stock had given breakout of ascending triangle pattern, which indicates further upside momentum in stock. The stock is meeting Daryl Guppy’s multiple moving averages set up rules as it is trading above both the short and long-term moving averages. The leading indicator, 14-period weekly RSI is currently quoting at 64.16 and it is in bullish zone. The weekly stochastic oscillator is also suggesting some bullish strength as per cent K is trading above per cent D. The weekly MACD stays bullish as it is trading above its zero line and signal line since last 17 weeks. Moreover, the daily ADX is very strong at 26.75. The -DI is much below the +DI and ADX is above the -DI and +DI. This shows the technical strength in the stock. Considering all the above factors, we recommend you to hold Divi’s Laboratories with the stop-loss of Rs 1,680 on closing basis.