Technical Portfolio Guide

KARUR VYSYA BANK LTD

CMP : Rs 31.10
BSE Code : 590003

I am holding Karur Vysya Bank bought at Rs 36. I was expecting it to bounce back but it fell even more. What should I do?
- Vishal Anand

EXIT KARUR VYSYA BANK AT THE CURRENT MARKET PRICE
Karur Vysya Bank Ltd is currently trading at Rs 31.10. Its 52-week high/low stands at Rs 69.85/ Rs 18.15 made on July 24, 2019, and March 27, 2020, respectively. After registering the low of Rs 18.75, the stock has witnessed almost 97 per cent pullback rally. The pullback is halted at a 38.2 per cent retracement level of its prior downward rally (RS 64.60Rs 18.75). Recently, the stock has given a neckline breakdown of Adam & Adam double top pattern, which suggests correction before another northward rally. The stock is currently trading below its short and long-term moving averages. If we look at the daily chart, we will notice that it has been continuously trading below its 200-day EMA level since October 2016. The leading indicator, 14-period daily RSI, is currently quoting at 46.55 and is trading below its nine-day average. The daily MACD stays bearish as it is trading below its zero line and signal line. The histogram is suggesting a pickup in the downside momentum. Hence, we recommend you to exit in Karur Vysya Bank at the current market price.

GMM PFAUDLER LTD

CMP : Rs 4,003.85
BSE Code : 505255

I am holding GMM Pfaudler at Rs 3,500 for the short-term. Should I hold or book profit?
- Mukul Joshi

BOOK PROFIT IN GMM PFAUDLER AT THE CURRENT MARKET PRICE
GMM Pfaudler Ltd is currently trading at Rs 4,003.85. Its 52-week high/low stands at Rs 4,700/Rs 1,150 made on June 10, 2020, and August 02, 2019, respectively. The stock has formed a bullish belt hold candlestick pattern as on the weekend of March 27, 2020, and thereafter, marked the sequence of higher tops and higher bottoms. Recently, the stock has formed a reversal spinning top candlestick pattern as on the weekend of June 12, 2020. Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. 13-day EMA and 20-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the zone of 78-80 and at present, its reading is 42.28. The RSI is trading below its nine-day average, which indicates a further downside momentum. The momentum indicator MACD line has crossed under the signal line on the weekly timeframe, which resulted in the histogram turning negative. Considering all the above factors, we recommend you to book profit in GMM Pfaudler at the current market price.

SUN PHARMA ADVANCED RESEARCH CO. LTD

CMP : Rs 171.65
BSE Code : 532872

Please suggest what should I do with SPARC, which I bought at Rs 130 for the medium-term
- Aayush Gandhi

HOLD SPARC WITH A STOP-LOSS OF RS 156 ON CLOSING BASIS
Sun Pharma Advanced Research Company Ltd is currently trading at Rs 171.65. Its 52-week high/low stands at Rs 210.70/Rs 81 made on January 28, 2020, and March 25, 2020, respectively. The stock has formed a Morning star candlestick pattern as on March 26, 2020, and thereafter, bounced sharply up to the level of Rs 184.65. On June 23, 2020, the stock has formed shooting star candlestick pattern and thereafter, witnessed a minor correction. During this corrective phase, the volume mostly is below 50-day averages volumes, which suggests that it is just a routing decline after a robust move. The correction is halted near 50 per cent retracement level of its prior upward move and it coincides with the 20-day EMA level. Considering the daily timeframe, the stock has given a neckline breakout of Adam & Adam double bottom pattern along with robust volume. Currently, the stock is trading above its short and long-term moving averages. The RSI is in a rising trajectory on both the weekly and the daily timeframe. Interestingly, the daily stochastic has given an inverted head & shoulders pattern breakout, which is also bullish. Hence, we recommend you to hold Sun Pharma Advanced Research Company with a stop-loss of Rs 156 on a closing basis.

MM FORGINGS LTD

CMP : Rs 192.65
BSE Code : 522241

Currently, MMFL looks promising. Can I enter the scrip now?
- Suresh Kamath

AVOID BUYING MMFL FOR NOW
MM Forgings Ltd is currently trading at Rs 192.65. Its 52-week high/low stands at Rs 470.55/Rs 151 made on January 31, 2020, and May 22, 2020, respectively. After registering an all-time high, the stock has marked the sequence of lower tops and lower bottoms. 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. The weekly stochastic oscillator has recently given a bearish crossover, which indicates a limited upside for now. 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 MM Forgings for now.