Technical Portfolio Guide
TUBE INVESTMENTS OF INDIA LTD
CMP: Rs. 566.70
BSE Code: 540762
I have bought TIINDIA at Rs 456 for a short-term. Should I wait or exit with profits?
- Peethambaran Nair
HOLD TIINDIA WITH A STOP-LOSS OF RS 500 ON CLOSING BASIS
Tube Investments of India Ltd is currently trading at Rs 566.70. Its 52-week high/low stand at Rs 577/Rs 325 made on February 27, 2020 and August 06, 2019 respectively. The stock had given a downward sloping trendline breakout as on weekend of November 01, 2019 and thereafter, marked gradual higher tops and higher bottoms. Considering the daily time frame, the stock had recently given a neckline breakout of Adam and Adam double bottom pattern, which indicates further upside momentum. The major trend of the stock is bullish as it is trading above its weekly pivot and above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator, 14-period weekly RSI is currently quoting at 74.90 and it is in super bullish zone. Interestingly, the daily RSI has also given a neckline breakout of double bottom pattern, which is also a very bullish sign. The daily MACD line just crossed the signal line and the histogram became green. Considering all the above factors, we recommend you to hold Tube Investments of India with a stop-loss of Rs 500 on closing basis.
PIDILITE INDUSTRIES LTD
CMP: Rs. 1557.00
BSE Code:500331
I have bought Pidilite above Rs 1,385. Now, I would like to know your suggestion on this stock on the basis of the current market.
- Ajay Ruhela
BOOK PROFIT IN PIDILITE INDUSTRIES AT CURRENT MARKET PRICE
Pidilite Industries Ltd is currently trading at Rs 1557. Its 52-week high/low stand at Rs 1,609/Rs 1,090 made on February 14, 2020 and May 15, 2019 respectively. Considering the weekly time frame, the stock has been trading in a rising channel since September 2018. Recently, the stock had formed a doji candlestick pattern as on weekend of November 29, 2019 and thereafter, bounced sharply up to the upper trendline of the rising channel. The stock had formed a reversal shooting star like candlestick pattern near the upper trendline of rising channel as on weekend of February 20, 2020. With this bearish formation, the stock had also managed to close below its weekly pivot and also, below its short-term moving averages, i.e. eight-day EMA and 13-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 73-75 zone and, at present, its reading is 55.79 The RSI is trading below its nine-day average and it is in falling mode, which indicates a further downside momentum. The daily MACD stays bearish as it is trading below its zero line and the histogram is suggesting a bearish momentum. Considering all the above factors, we recommend you to book profit in Pidilite Industries at the current market price.
WHEELS INDIA LTD
CMP: Rs. 530.45
BSE Code: 590073
Wheels India is trading near its 52-week low. Can I enter now?
- Firoz Alam
AVOID BUYING WHEELS INDIA FOR NOW
Wheels India Ltd is currently trading at Rs 530.45. Its 52-week high/low stand at Rs 1,064/Rs 504.35 made on March 03, 2019 and February 27, 2020 respectively. The stock had given a breakdown of bump and run reversal pattern as on weekend of December 14, 2018 and thereafter, marked the sequence of lower tops and lower bottoms. Majorly, the stock is displaying a bearish trend as it is trading below its weekly pivot and short-long term moving averages, i.e. 20-week EMA, 50-week EMA, 100-week EMA, and 200-Week EMA. Taking the daily chart into consideration, it has been continuously trading below its 200-day SMA level since March 2019. The leading indicator, 14-period weekly RSI is currently quoting at 32.16 and it is not able to cross 60-mark since June 2018. The daily and weekly MACD stays bearish as it is trading below its zero line and signal 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 avoid buying Wheels India for now.
BHARAT FORGE LTD
CMP: 461.75
BSE Code: 500493
I have bought the shares of Bharat Forge at Rs 448. Should I hold or book profits?
- Upendra Sankpa
BOOK PROFIT IN BHARAT FORGE AT CURRENT MARKET PRICE
Bharat Forge Ltd is currently trading at Rs 461.75. Its 52-week high/low stand at Rs 547.90/ Rs 378 made on March 15, 2019 and September 03, 2019 respectively. The stock had formed a reversal piercing line candlestick pattern as on weekend of September 06, 2019 and thereafter, marked the sequence of gradual higher tops and higher bottoms. Considering the daily time frame, the stock recently gave breakdown of rising channel, indicating a bearish momentum. 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 47.62 and it is trading below its nine-week average, which indicates a further downside momentum. The momentum indicator weekly MACD line has crossed under the signal line, which resulted in the histogram turning negative. Considering all the above factors, we recommend you to book profit in Bharat Forge at the current market price.