Technical Portfolio Guide
SUNTECK REALTY LTD.
CMP : 285.25
BSE Code : 512179
What's the outlook for Sunteck Realty for the short-term?
- Rajesh Chand
AVOID THIS STOCK
The stock has a history of erratic price behaviour. On a longer-term chart, it is yet to make a higher high for the bullish conviction. It has retraced almost 60 per cent of the recent rise and oscillating around 50 per cent retracement level. It is trading below the 10 and 40 weekly averages. The current week's price action is giving hopes for an upward move as the stock has witnessed a spike in volume. The relative price strength is very minimal at 26. For the last 13 days, it is in the process of a bottom formation. There is a double bottom kind of pattern with the level of Rs 279.70 as a valley point while the 50-DMA is at Rs 282.5. This zone of resistance of Rs 280-Rs 283 is significant for the stock for a bullish reversal. Above this zone, it can test the level of Rs 303 and Rs 319. These are the short to medium targets. In any case, if it fails to move above the resistance zone, it may resume the downtrend. A note of caution is that a single day is enough to erase the gains, as past history says. Avoid this stock and instead, focus on good quality stocks.
KITEX GARMENTS LTD
CMP : Rs115.75
BSE Code : 521248
I'm planning to buy the stocks of Kitex Garments. Is this a good stock to buy at current levels?
- Balamurugan Subbiah
AVOID THIS STOCK
It was a well-known multi-bagger stock in the past and was also in the limelight during 2014-15. Since then, it has been continuously declining to new lows. It has declined 90 per cent from the high of July 2015 (Rs 767.15). For the last three years, the stock is trading between Rs 74 and Rs 149. The prolonged base needs good fundamental support to breakout. It has an erratic price behaviour on the daily chart as huge up and down moves are very frequent. For the last 60 weeks, the stock is trading between the range of Rs 96 and Rs 121. Maybe, the last week's price action is calling for traders' as well as investors' attention. Though the stock is trading above the 50-DMA and 200-DMA, its relative price strength is as low as 30. Better avoid this stock as long as it trades below the level of Rs 171.
REDINGTON (INDIA) LTD.
CMP : Rs182.55
BSE Code : 532805
I'm holding 500 shares of Redington (India) at an average price of Rs 145. Is there still some steam left in the stock or should I book profit?
- Venkatesan Rangachari,
KEEP A STOP-LOSS OF RS 175
After a 244 per cent gain from March 2020 low, the stock is in counter-trend consolidation. This formation of higher lows and the parallels highs has led to the formation of ascending triangle pattern on the daily chart, which is a bullish continuation pattern. The stock is oscillating around the 50-DMA. Because of this consolidation, the momentum indicators showed subdued-ness. The ADX (30.06) shows that the trend strength is still intact. The RSI is in the bullish zone as well as above the 45-period average. The current week's volume spike indicates that the stock may come out of the consolidation with a higher probability of breaking on the upside. Its relative price strength (RS) is at 59 and improving. The +DMI is above the -DMI, which is a positive sign. The stock is above the Anchored VWAP resistance and also, above the Ichimoku cloud. The Elder impulse system has given a buy signal. It is better to hold the stock and keep a stop-loss at Rs 175. A close above Rs 193 will be a big breakout. Hence, hold.
QUESS CORP LTD.
CMP : Rs680.25
BSE Code : 539978
I had bought 200 shares of Quess Corp at a level of Rs 710 and it has been trading below my purchase price. Is it a good time to average this stock?
- Suraj Patel
MAINTAIN A STOP-LOSS OF RS 671 ON A CLOSING BASIS
The stock is consolidating for the last 13 weeks in Rs 535-Rs 807 on low volume. The stock is trading above the 10 and 40-weeks averages. The MACD line is above the zero lines, and the histogram is showing a decline in the bearish momen-tum. The RSI was bouncing from the 50 zones and entered into a bullish zone. The Elder impulse system shows the bullish setup. The stock just moved above the Anchored VWAP resistance. Its relative price is fair enough at 71 and is rising. A close above Rs 704 will be a positive sign for the stock. Above this level, it can clear the previous high of Rs 807. Maintain a stop-loss at Rs 671. The stock is trading at almost your purchase price. Nothing to worry about it as long as it trades above Rs 671. If you are risk-averse, exit the stock when it closes below the previous day's low.