Technical Portfolio Guide

WHIRLPOOL OF INDIA LTD 

CMP: Rs. 2275.90 
BSE Code: 500238

Please suggest what should I do with Whirlpool, which I bought in Rs 1,990 for shortterm?
-Kalpataru Barman

BOOK PROFIT IN WHIRLPOOL OF INDIA AT CURRENT MARKET PRICE
Whirlpool of India Ltd is currently trading at Rs 2,275.90. Its 52-week high/low stand at Rs 2,570/Rs 1,314.65 made on January 20, 2020 and February 20, 2019 respectively. The stock had given a flat pattern breakout as on weekend of September 20, 2019 and thereafter, bounced sharply up to its all time high level. Considering the daily time frame, the stock had recently given a breakdown of rising wedge pattern, which indicates a correction before another upward momentum. Along with this pattern breakdown, the stock has also managed to close below its weekly pivot and below its short-term moving averages, i.e. 20-day EMA and 50-day EMA level. The 14-period weekly RSI is currently quoting at 55.10 and it is trading below its nine-week average. The weekly fast stochastic is also trading below its slow stochastic line. The daily and weekly MACD stays bearish as it is trading below its zero line. Moreover, there has been a negative divergence between the weekly RSI, the weekly stochastic and the stock price movement, which suggests limited upside. Considering all the above factors, we recommend you to book profit in Whirlpool of India at current market price.

FAIRCHEM SPECIALITY LTD 

CMP: Rs. 626.70
BSE Code: 530117

I am holding shares of Fairchem Speciality at Rs 420. Should I hold or book profit?
- Jibin Isac

HOLD FAIRCHEM SPECIALITY WITH A STOP-LOSS OF RS 550 ON CLOSING BASIS
Fairchem Speciality Ltd is currently trading at Rs 626.70. Its 52-week high/low stand at Rs 667/Rs 380.00 made on February 19, 2020 and February 20, 2019 respectively. After registering the high of Rs 582, the stock has witnessed a correction. The correction is halted near 61.8 per cent Fibonacci retracement level of its prior upward move (Rs 320.20-Rs 582) and it coincides with the 200-week EMA level. Considering the weekly time frame, the stock had recently given a breakout of downward sloping trendline along with strong volumes, which indicates a further upside momentum. All the moving averages are trending upside and they are in a particular sequence. 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. All the major indicators also suggest a bullish momentum in the stock. The weekly RSI (72.84) is in the super bullish zone. The daily and weekly MACD stays bullish, as it is trading above its zero line and signal line. The MACD histogram suggests a bullish momentum. Moreover, the other volume based indicators like On Balance Volume (OBV) and Money Flow Index (MFI) are also very strong. Considering all the above factors, we recommend you to hold Fairchem Speciality with a stop-loss of Rs 550 on closing basis. 

HERO MOTOCORP LTD 

CMP: Rs. 2240.10
BSE Code: 500182

I am holding shares of Hero Motocorp bought at Rs 2,530 in November, expecting it to bounce back but it fell more. What should I do?
- Chandrasekhar Basam

EXIT HERO MOTOCORP AT CURRENT MARKET PRICE
Hero Motocorp Ltd is currently trading at Rs 2,240.10. Its 52-week high/low stand at Rs 3,021.15/Rs 2,225 made on September 23, 2019 and February 18, 2020 respectively. The stock has formed three black crows like candlestick pattern as on weekend of September 22, 2017 and thereafter, marked the sequence of lower tops and lower bottoms. Currently, the stock is trading below its weekly pivot and long and short-term moving averages, i.e. 20-week EMA, 50-week EMA, 100-week EMA and 200-week EMA. The leading indicator, 14-period weekly RSI is currently quoting at 34.70 and it has recently given a breakdown of upward sloping trendline support, which indicates a further downward momentum. The weekly fast stochastic is also trading below its slow stochastic line. Moreover, on the directional index, the bearish strength is higher than the bullish strength, as +DI is much below the -DI. Considering all the above factors, we recommend you to exit in Hero Motocorp at current market price.

CITY UNION BANK LTD 

CMP: Rs. 222.90
BSE Code: 532210

I have bought shares of City Union Bank (CUB) at Rs 190 for a short-term. Should I wait or exit with profits?
- Dinesh Joshi

BOOK PROFIT IN CITY UNION BANK AT CURRENT MARKET PRICE 
City Union Bank Ltd is currently trading at Rs 222.90. Its 52-week high/low stand at Rs 249/Rs 175.45 made on January 16, 2020 and February 25, 2019 respectively. Considering the weekly time frame, the stock is trading in upward channel since December 2016. Recently, the stock has formed a reversal shooting star candlestick pattern as on January 16, 2020 and entered into a correction. Currently, the stock is trading below its weekly pivot and its long and short-term moving averages, i.e. 20-day EMA, 50-day EMA and 100-day EMA. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the 70 zone and, at present, its reading is 50.81. The RSI is trading below its nine-week average and it is in falling mode, which indicates a further downside momentum. The daily and weekly MACD stays bearish as it is trading below its zero line. Considering all the above factors, we recommend you to book profit in City Union Bank at current market price.