Technical Portfolio Guide

ADF FOODS 

CMP: Rs 228.85
BSE Code: 519183 

Can I buy ADF Foods at the current price for the long term? 

- Sunkara Veerababu 

AVOID BUYING ADF FOODS FOR NOW 

ADF Foods Ltd is currently trading at Rs 228.85. Its 52-week high/low stand at Rs 290/ Rs 191 made on September 4, 2018 and March 23, 2018, respectively. After registering all-time high, the stock entered into corrective phase. At present, the stock is trading below its 20-day EMA (230.20), 50-day EMA (241.70), 100-day EMA (244.55) and 200-day EMA (244.65), which indicates a medium-long term downtrend. Additionally, considering the weekly time frame, the stock is trading below ichimoku cloud and lower band of keltnar channel, which depicts negative momentum. According to the momentum indicators, the 14-period RSI on the weekly scale is quoting around 45.14 and trading below its 9-week average. The weekly MACD stays negative as it is trading below its zero line. Considering all above factors, avoid buying ADF Foods for now. 

SONATA SOFTWARE 

CMP: Rs 341
BSE Code: 532221 

I am holding Sonata Software at Rs 315. What should I do now? 

- Panneer Selvan 

G B HOLD WITH STOP LOSS OF RS 328.40 ON A CLOSING BASIS. 

Sonata Software Ltd. is currently trading at Rs 341. Its 52-week high/low stand at Rs 428.75/Rs 266 made on September 19, 2018 and October 25, 2018, respectively. After registering all-time high, the stock witnessed correction, which halted in-between 50 and 61.8 per cent Fibonacci retracement level of its prior upward rally, where it had formed bullish harami pattern on the weekly scale. Since then, it is trading with a gradual higher tops and higher bottoms. Considering the daily time frame, the stock has presently given consolidation breakout along with decent volume. The 14-period day RSI quoting at 60.57 suggests strong momentum in the stock. Moreover, the fast stochastic line is also trading above its slow stochastic line, which is positive for the stock. The stock may witness some profit-booking in the double top zone of Rs 348- Rs 350, but it still holds a potential upside up to Rs 361-370 levels. Hence, we suggest you to hold with stop loss of Rs 328.40, which is its 20-day EMA level. 

CAPACITE INFRA 

CMP: Rs 197.45
BSE Code 540710 

I am holding shares of Capacite Infraprojects bought nearly at Rs 237.15, I don’t want to exit at loss. What should I do? 

- Ajay Adikane 

EXIT AT THE CURRENT PRICE. 

Capacite Infraprojects Ltd is currently trading at Rs 197.45. Its 52-week high/low stand at Rs 372.75/Rs 171.10 made on April 24, 2018 and October 26, 2018, respectively. The stock had formed a reversal candlestick pattern, i.e. doji candle at all-time high and since then it is marking series of lower tops and lower bottoms. At present, the stock is trading below its 20-day EMA (204.00), 50-day EMA (217.75), 100-day EMA (228.70) and 200-day EMA (253.70), which indicates a medium-long term downtrend. The 14-period weekly RSI is quoting at 35.88, which suggests negative bias but it has not entered into the oversold zone yet. The volumes are very low and other oscillators are lying below 50 and are tilted southward. Moreover, the stock is trading below its Bollinger band average of Rs 203.95 and the upper band is currently placed at Rs 224.50. Considering all the above factors, we suggest you to exit at current price. 

MINDA IND. 

CMP: Rs 316.55
BSE Code: 532539 

Can I enter in Minda Industries at the moment? 

- Vinayak Pattar 

BUY MINDA INDUSTRIES AT CURRENT MARKET PRICE 

Minda Industries Ltd is currently trading at Rs 316.55 Its 52-week high/low stand at Rs 455/Rs 256.30 made on July 11, 2018 and February 11, 2019, respectively. The stock witnessed a double top like pattern at around Rs 449-Rs 453 levels in May and August 2018, which was earlier quoted in January 2018. Thereafter, the stock has corrected up to its multi-touch point support zone of Rs 260-Rs 265, and thereafter, it initiated its northward move. Presently, the stock has given a downward sloping trendline breakout at Rs 297 level with huge volumes. Additionally, the stock had formed sizeable bullish candle on breakout day, which adds strength to the breakout. Meanwhile, it also managed to close above its 50-day and 100-day moving averages. The 14-period day RSI is currently quoting at 62.54 and suggests some more upside. The fast stochastic line is also trading above its slow stochastic line. Hence, we suggest you to buy Minda Industries at current market price. 

DHANUKA AGRITECH 

CMP: Rs 399.45
BSE Code 507717 

I am holding 4000 shares of Dhanuka Agritech. Kindly advise whether to hold or sell the shares 

- Rajendra M. Rege 

EXIT DHANUKA BELOW RS 355 

Dhanuka Agritech Ltd is currently trading at Rs399.45. Its 52-week high/low stand at Rs 661.45/Rs 358.25 made on February 21, 2018 and October 31, 2018, respectively. The stock has seen lower tops and lower bottoms from its all-time high levels, where it had formed hanging man kind of reversal pattern as on weekend of June 16, 2017. Presently, the stock is trading below its major moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs, which depicts negative bias. However, the volumes and oscillators are too poor to suggest any momentum for now. We do not see any major reversal in the stock until it forms sizeable bullish candle above the downward sloping trendline resistance, which is currently placed at Rs 445. Hence, we suggest you to exit the stock below Rs 355, as it will indicate a major trend continuation. 

SANGHVI MOVERS 

CMP: Rs 94
BSE Code: 530073 

I bought 100 shares of Sanghvi Movers at Rs 230 one year back. The stock is falling every day. What is the prospect now or after some months? 

- Arun Kumar 

EXIT AT THE CURRENT MARKET PRICE 

Sanghvi Movers Ltd is currently trading at Rs 94. Its 52-week high/low stand at Rs 222.50/Rs 82.90 made on April 10, 2018 and February 15, 2019, respectively. The stock had formed bearish engulfing candle as on weekend of August 14, 2015, and thereafter, it had marked series of lower tops and lower bottoms. Presently, the stock is trading below its 50-day EMA (99.55), 100-day EMA (111.55) and 200-day EMA (131.20), which indicates a medium-long term downtrend. The 14-period daily RSI is currently quoting at 51.99 and it is not able to sustain above the 60 mark since April 23, 2018. The volumes are too poor. For now, we do not see any major reversal, despite oscillators lying in oversold zone on the weekly time frame. Hence, we suggest you to exit on any short term bounce or at current market price.