Technical Portfolio Guide
CCL PRODUCTS (INDIA) LTD.
CMP: Rs299.10
BSE Code:519600
I'm holding 400 shares of CCL Products (India) Ltd at Rs 280. What's the short-medium target for the stock? Also, suggest a stop-loss level.
- Shakunt Shri
MAINTAIN STOP-LOSS AT RS 256
The stock of CCL Products is trading between the range of Rs 230 and Rs 355 for the last five years. Currently, the stock has broken out of a 36-week consolidation during the last week with an above-average volume. The stock fell sharply on Wednesday, almost retesting the breakout level. It is trading 8.25 per cent above the 20-DMA and 17.23 per cent above the 50-DMA. The weekly ADX (17.32) is improving, and +DMI is much above the -DMI, showing some positive strength. The 20-period RSI (60.87) is in a bullish zone, showing hidden divergence. The long-term moving average of 200-DMA is trending upside. It is also meeting Daryl Guppy's GMMA rules on the weekly chart. Your buy price is near the breakout level. It may retest Rs 277 (20-DMA) level in the short-term which is almost your buy price. Keep a stop-loss at a 50-DMA level of Rs 256 and continue your position. If there's a move above Rs 300 on closing, the stock can test the level of Rs 360.
TATA MOTORS LTD
CMP: Rs325.85
BSE Code:500570
Is this a good time to invest in Tata Motors?
- Hitesh Jagasia
ACCUMULATE STOCK IN THE RANGE OF RS 325-RS 357
Tata Motors was seen consolidating between Rs 295 and Rs 325 for the past ten weeks. Itrose nearly 460 per cent from the lows of March 2020. Before that, the stock declined by 89 per cent from the 2016 top of Rs 598 to Rs 63. Besides, the stock is forming a cup pattern for the past 10 weeks and is near the breakout level. It is above the 50-DMA and 20-DMA and Bollinger Bands are also flattened. The daily MACD has given a buy signal while the his-togram is showing bullish momentum. The positive directional indicator i.e. +DMI is above the -DMI. The trend strength indicator, ADX started rising after a flat zone. The 14-period RSI is out of the squeeze and above the prior swings. It is also in a bullish zone. The Elder impulse system and Pring's KST have given a buy signal. The stock is also trading above the Anchored VWAP support and resistance levels. Its relative price strength is as high as 88, which shows that there is good strength in the price trend. In short, the stock is in consolidation. It can be accumulated between the zone of Rs 325 and Rs 357, with a stop-loss of Rs 288. The short-term target is at Rs 395 and above that, it can test Rs 480 in the long-term.
STEEL AUTHORITY OF INDIA LTD.
CMP : Rs132.20
BSE Code : 500113
Where should one opt to book profits in SAIL? I had bought 1,200 shares at an average price of Rs 78.
- Aun Haider
HOLD WITH A TRAILING STOP-LOSS OF RS 113
The metal sector is exhibiting a very strong trend and it has been outperforming hands down. SAIL has broken out of an 8-year consolidation and entered into stage-2 with a strong breakout in April. Before that, it had regis-tered a good base breakout at Rs 52 in December 2020. Since March 2020 lows, it has given a whopping 640 per cent return in just 13 months. For the last three days, the stock is falling because of profit booking on low volume. The stock is trading 43.76 per cent above the 50-DMA and 17.16 per cent above the 20-DMA. It may dip towards 20-DMA in the near term. The daily MACD histogram shows declined bullish momentum. The Anchored VWAP support is at Rs 107.46, and the 20-DMA is at Rs 113.20. As long as the stock manages to hold this support zone, you can be positive about the stock. Meanwhile, the RSI is in a bullish zone but a fall below 55 could be a short-term negative. In short, as the stock is retracing from the top, either you can book partial profit, or hold with Rs 113 as a stop-loss.
SHALBY LTD
CMP : Rs154.50
BSE Code : 540797
I've been holding the stock of Shalby Ltd from Rs 94. Is this a good time to book profit or should I continue holding this stock?
- Pramod Upadhyay
BOOK PARTIAL PROFITS AND HOLD REMAINING QUANTITY WITH TRAILING STOP-LOSS
The stock fell sharply by 85 per cent from its 2017 December listing highs of Rs 217 to Rs 40. The stock has broken out of parallel resistances. It is registering a massive volume increase for the last four weeks. Last week, it has broken out of the 16-week cup with a 28.6 per cent depth. It rose by 29 per cent after the breakout. With this massive move, the stock closed above the weekly Bollinger Bands. This may lead to consolidation for some period and will retrace towards below to Rs 138. Even on the weekly charts, the indicators are in the overbought zone. The daily RSI is declining from an extremely overbought zone of 83. The Anchored VWAP support is also at Rs 131.45. The stock is 35.80 per cent above the 20-DMA and 59.76 per cent above the 50-DMA. This also shows the overextended rally. In short, the stock has broken out of long-term parallel resistance lines but in the short-term, it may retrace. If you are a long-term investor, hold it with a trailing stop-loss at Rs 131 or, you can book partial profits now.