Technical Portfolio Guide

BIOCON

CMP: Rs.606.90 BSE Code: 532523

I am holding Biocon bought at Rs 625. Should I keep holding the same? 
- Ashish Gokhale

HOLD BIOCON WITH A STOP LOSS OF RS 593

Biocon is currently trading at Rs 606.90. Its 52-week high/low stand at Rs 695/Rs 320 made on June 5, 2018 and October 3, 2017, respectively. Considering the monthly time frame, the stock corrected after hitting 52-week or all-time high levels in June and July and bounced back in August from 38.2% retracement of the upward rally from 52-week low to the peak. Considering the daily time frame, the stock has formed a rounding bottom taking support at the 200-day EMA level. The stock attempted a breakout at Rs 625 on August 28, but it could not sustain on a closing basis. However, the resurgence in volumes and the 14-period RSI at 60 suggests momentum. We suggest you to hold for now.

TAJ GVK

CMP: Rs.198.75 BSE Code: 532390

I had bought Taj GVK at Rs 238 but it fell sharply and I couldn't exit. What to do now? - M. Shoaib

HOLD TAJ GVK HOTELS & RESORTS WITH A STOP LOSS OF RS 197 OR A BOUNCE AT RS 210-218 CLS

Taj GVK is currently trading at Rs 198.75. Its 52-week high/low stand at Rs 263.80/Rs 149.20 made on April 24, 2018 and September 8, 2017, respectively. Considering the daily time frame, the stock had attempted a symmetric triangle breakout at Rs 239 level on July 30, but then it consolidated for four consecutive days and gave a sharp fall of up to Rs 200 level witnessing a breakdown at Rs 211 level. Now the stock is consolidating at the lower levels and it is just above its 200-day EMA support level. The volumes have picked up, but the oscillators are yet to cue reversal. We suggest you to hold and exit below Rs 197 or at the bounce back at Rs 210, followed by Rs 218.

BEML

CMP: Rs.817.45 BSE Code: 500048

Can I enter BEML to average my position? 
- Kapalli Srirama

AVOID BEML FOR NOW

BEML is currently trading at Rs 817.45. Its 52-week high/low stand at Rs 1947.45/737.45 made on September 19, 2017 and July 23, 2018 respectively. The stock is seen falling with lower tops and lower bottoms since its 52-week high level. The stock had attempted a bounce with sharp rise from the 52-week low, breaching its prior resistance, but it retreated sharply and is now consolidating at lower levels. The volumes are low and the 14-period RSI below 55 suggests lack of momentum. The stock is also trading below its 50, 100 and 200-day EMA resistances . We suggest you to avoid for now and enter above Rs 855-870.

GMDC

CMP: Rs.114.15 BSE Code: 532181

I am holding NMDC bought at Rs 123. What should be my next action? 
- Jayesh Jain

HOLD GMDC WITH A STOP LOSS BELOW RS 113 CLS.

GMDC is currently trading at Rs 114.15. Its 52-week high/low stand at Rs 181.20/Rs 102 made on October 27, 2017 and June 28, 2018 respectively. The stock was seen falling since end of October 2017 with lower tops and lower bottoms. The stock made a triple bottom-like pattern at Rs 102-103 levels on the daily time frame during June 6, June 29 and July 17 and thereby witnessed a rise of up to Rs 123 above its 50 and 100-day EMAs, but it witnessed a correction of up to 50% retracement of the move from Rs 102 to Rs 123. The stock is trailing at those levels and may see some upside as rising volumes and the 14-period RSI above 55 suggests an upside momentum. We suggest you to hold the stock with a stop loss of Rs 113.

VGUARD

CMP: Rs.224.50 BSE Code: 532953

Can I buy Vguard at the moment? 
- S. Sheikh

ENTER V-GUARD AT THE CURRENT LEVELS

V-Guard is currently trading at Rs 224.50. Its 52-week high/low stand at Rs 254.90/Rs 177 made on April 20, 2018 and September 28, 2017, respectively. The stock witnessed a fall in the form of lower tops and lower bottoms from its 52-week high to Rs 182 level. The stock thereafter witnessed a sharp rise up to Rs 223, breaching its first resistance at Rs 217 level. The stock corrected up to 38.2% of the upward rally from Rs 182 to Rs 223 till August 7 and has consolidated thereafter till August 28. On August 29, it broke the Rs 223-mark, but it could not sustain on a closing basis. The whole move has formed a kind of cup and handle-pattern with a breakout at Rs 21 Jaijyoti 8 level. We suggest you to Buy.

MERCATOR

CMP: Rs.20.45 BSE Code: 526235

I am holding shares of Mercator and wish to average it to recover losses. Can I do that at CMP? 
- Jaijyoti

AVOID MERCATOR FOR NOW AND ENTER ABOVE RS 23 ON CLOSING BASIS

Mercator is currently trading at Rs 20.45. Its 52-week high/low stand at Rs 49/Rs 18.18 made on November 1, 2017 and July 20, 2018 respectively, suggesting a downtrend. The stock is trading in a negative trend since April 2017. Considering the daily time frame, the stock fell consistently making lower tops and lower bottoms since January 15, 2018 up to the 52-week low. Currently, the stock is consolidating at lower levels with no signs of reversal for now. The stock is trading below its 50, 100 and 200-day EMAs. The volumes are poor and the 14-period RSI is inclined southwards. We suggest you to avoid for now and enter only above Rs 23 level on a closing basis. On the contrary, we suggest you to exit current position below the Rs 18.80 level.

Disclaimer: 1) Some of the companies covered in this section do not have good volumes on the bourses. Technical analysis works much better in cases where volumes on the stock are high. Investors please take note of the same. 2) Recommendations in this section are purely based on Technical Analysis. FNIW may or may not look at the Fundamental Strength of the recommended stocks.