Technical Portfolio Guide

GUJARAT GAS LTD

CMP: Rs286 BSE
Code:539336

Earlier, I bought the stocks of Gujarat Gas at higher levels, and presently, the stock is quoting at lower levels. Should I hold or exit?

- Manali Singh

EXIT GUJARAT GAS BELOW RS 280 ON CLOSING BASIS
Gujarat Gas Ltd is currently trading at Rs 286. Its 52-week high/low stands at Rs 330/Rs 162.20 made on July 02, 2020, and October 04, 2019, respectively. The stock has formed a spinning top candlestick pattern as on July 01, 2020, followed by bearish engulfing candle and thereafter, witnessed a correction. Along with this bearish formation, the stock has also managed to close below its short-term moving averages, i.e. 13-day EMA and 20-day EMA. Further, the stock has formed a reversal head & shoulders pattern on the daily timeframe, which suggests a correction before another northward journey. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the zone of 80 zone and at present, its reading is 43.66. The RSI is trading below its nine-day average, which indicates a further downside momentum. In case, the stocks sustain below the neckline of the head & shoulders pattern, which is currently placed at Rs 280, it will invite further selling. Hence, we recommend you to exit Gujarat Gas below Rs 280 on a closing basis.

JK LAKSHMI CEMENT LTD

CMP: Rs289.05
BSE Code:500380

Please suggest what should I do with JK Lakshmi Cement, which I bought at Rs 240 for the short-term?

- Sankaranarayanan Mariappan

HOLD JK LAKSHMI WITH A STOP-LOSS OF RS 275 ON CLOSING BASIS
JK Lakshmi Cement Ltd is currently trading at Rs 289.05. Its 52-week high/low stands at Rs 389.35/Rs 179.80 made on January 29, 2020, and April 07, 2020, respectively. The stock has formed a homing pigeon-like candlestick pattern as on April 08, 2020, and thereafter, marked the sequence of higher tops and higher bottoms. On Tuesday, the stock has given a 15-day consolidation breakout on the daily timeframe, and this breakout is confirmed by the above 50-day average volumes. The stock is trading above its short and long-term moving averages. The 14-period RSI on the daily timeframe is in bullish territory. Furthermore, in the recent consolidation phase, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per the RSI range shift rules. The fast stochastic is also trading above the slow stochastic line. Hence, we recommend you to hold JK Lakshmi Cement with a stop-loss of Rs 275 on a closing basis.

ATUL LTD

CMP:Rs5,081.90
BSE Code:500027

I am holding the shares of Atul Limited at Rs 4,500 for the short-term. Should I hold or book profit?

- Aayush Gandhi

HOLD ATUL WITH A STOP-LOSS OF RS 4,650 ON CLOSING BASIS
Atul Ltd is currently trading at Rs 5,081.90. Its 52-week high/low stands at Rs 5,447.25/Rs 3,256.60 made on March 03, 2020 and March 19, 2020, respectively. After registering the high of Rs 5,050 as on April 30, 2020, the stock has witnessed a correction. Considering the daily timeframe, the stock has recently given a breakout of the ascending triangle pattern. This breakout is confirmed by the above 50-day average volume. Along with this triangle breakout, the stock has also managed to close above the upper Bollinger band and started the band walk, which is a very bullish sign. 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. The RSI is in a rising trajectory in both the weekly and the daily timeframe. The ADX is very strong at 36.21. The -DI is below the +DI and the ADX is above the -DI and +DI. This shows a technical strength in the stock. Considering all the above factors, we recommend you to hold Atul Ltd with a stop-loss of Rs 4,650 on a closing basis.

BANK OF BARODA

CMP: Rs46
BSE Code:532134

Can I buy Bank of Baroda for four months at the current price?

- Atul Naik

AVOID BUYING BANK OF BARODA FOR NOW
Bank of Baroda is currently trading at Rs 46. Its 52-week high/low stands at Rs 108.25/ Rs 36.05 made on November 29, 2019, and May 20, 2020, respectively. The stock has given an upward sloping trendline breakdown as on the weekend of March 01, 2020, and thereafter, marked the sequence of lower tops and lower bottoms. Currently, the stock is trading below its short and long-term moving averages, i.e. 20-week EMA, 50-week EMA, 100-week EMA, and 200-week EMA. The daily chart shows that it has been continuously trading below its 200-day EMA level from July 2019. The 14-period RSI on the weekly timeframe is in bearish territory. Furthermore, in the recent pullback rally, the RSI never breached its 40 mark, which indicates that the stock is in a super bearish range as per the RSI range shift rules. 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 Bank of Baroda for now.