Technical Portfolio Guide

AARTI INDUSTRIES LTD
                                 
CMP: Rs 1,108                   
BSE Code:524208

Please suggest what should I do with AARTIIND, which I bought at Rs 730 for the longterm?
- Srinivas Chinni

HOLD AARTI INDUSTRIES WITH A STOP-LOSS OF RS 900 ON CLOSING BASIS
Aarti Industries Ltd is currently trading at Rs 1,108. Its 52-week high/low stands at Rs 1,137.10/ Rs 662.05 made on March 29, 2020 and April 29, 2020 respectively. The stock had formed a reversal three white shoulders like candlestick pattern as on weekend of April 9, 2020 and thereafter, bounced sharply up to its all time high level. Recently, the stock has given a bullish pennant pattern breakout on the daily time frame, which suggests a bullish bias. As the stock is trading near lifetime highs, it is also trading above all the moving averages. All the major indicators suggest a bullish momentum in the stock. The 14-period weekly RSI is in a bullish zone. Interestingly, the weekly RSI has never been below the level of 40 since 2013. The lagging indicator, daily MACD, stays bullish as it is trading above its zero line and signal line. The average directional index (ADX), which shows the trend strength, is as high as 35.80 on a daily chart and 31.14 on a weekly chart. Generally, the level above 25 is considered as a strong trend. In both the time frames, the stock is meeting the criteria. Hence, we recommend you to hold Aarti Industries with a stop-loss of Rs 900 on closing basis.

ADITYA BIRLA FASHION & RETAIL LTD
         
CMP: Rs115.70         
BSE Code:535755 

Shall I enter ABFRL as it has fallen drastically in the last couple of months?
- Ravi Kakkar

AVOID BUYING ABFRL FOR NOW
Aditya Birla Fashion & Retail Ltd is currently trading at Rs 115.70. Its 52-week high/low stands at Rs 285.30/Rs 98 made on February 24, 2020 and April 27, 2020 respectively. The stock has given a breakdown of bump and run reversal pattern as on March 12, 2020 and thereafter; fell sharply up to its 52-week low. Majorly, the stock is displaying a bearish trend as it is trading below its weekly pivot and short and long-term moving averages, that is, 20-week EMA, 50-week EMA, 100-week EMA, and 200-Week EMA. Eight trading sessions ago, 200-DMA crossed over 50-DMA and was termed as the 'death crossover', which is a long-term bearish signal. The leading indicator, 14-period weekly RSI, is currently quoting at 22.93 and it is in a super bearish zone. The weekly MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend you to avoid buying ABFRL for now.

SUN PHARMA ADVANCED RESEARCH CO. 
      
CMP: Rs131.65   
BSE Code:532872

I have bought shares of SPARC at Rs 106 for the short-term. Should I hold or book profits?
- Sunil Dutt

HOLD SPARC WITH A STOP-LOSS OF RS 130 ON CLOSING BASIS
Sun Pharma Advanced Research Company Ltd is currently trading at Rs 131.65. Its 52-week high/low stands at Rs 210.70/Rs 81 made on January 28, 2020 and March 25, 2020 respectively. The stock had formed a reversal morning star candlestick pattern as on March 26, 2020 and thereafter, bounced sharply up to the level of Rs 147.95. However, since the last ten trading sessions, the stock is trading in countertrend consolidation and formed a flag like pattern. Currently, the stock is trading above its short-term moving averages, i.e. 20-day EMA and 50-day EMA. Among the momentum indicators, the 14-period weekly RSI is currently quoting at 45.96 and is trading above its nine-week average. The weekly stochastic oscillator is also suggesting some bullish strength as per cent K is above the per cent D. In case the stock sustains and close above its upper trendline of flag pattern, which is currently placed at Rs 148, then it may extend its northward journey. Hence, we recommend you to hold SPARC with a stop-loss of Rs 130 on closing basis.

CYIENT LTD
                                                
CMP: 228.40                                     
BSE Code:532175

I am holding Cyient Ltd, which I bought at Rs 240 in March. I expected it to bounce back but instead, it fell more. What should I do?
- Santosh Chowdhary

EXIT IN CYIENT AT THE CURRENT MARKET PRICE
Cyient Ltd is currently trading at Rs 228.40. Its 52-week high/low stands at Rs 603/Rs 200.05 made on May 2, 2019 and April 28, 2020 respectively. The stock had formed a reversal opening black Marubozu candlestick pattern as on weekend of May 18, 2018 and thereafter, marked the sequence of lower tops and lower bottoms. The stock has recently given a bearish pennant pattern breakdown, which suggests a further downside momentum. Currently, the stock is trading below its 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 in a super bearish zone and is trading below its nine-week average. The weekly MACD stays bearish as it is trading below its zero line and signal line. The histogram is suggesting that the downside momentum is picking up. Moreover, on the directional index, the bearish strength is higher than the bullish strength as +DI is much below -DI. Considering all the above factors, we recommend you to exit in Cyient Ltd at the current market price.