Technical Portfolio Guide
MOTHERSON SUMI SYSTEMS LTD
CMP : Rs120.75
BSE Code : 517334
I am holding the stocks of Motherson Sumi at an average price of Rs 92. Should I continue holding this scrip?
- Gopalkrishna Kulkarni
HOLD MOTHERSUMI WITH A STOP-LOSS OF RS 104 ON A CLOSING BASIS
Motherson Sumi Systems Ltd is currently trading at Rs 120.75. Its 52-week high/low stands at Rs 151/Rs 48.50 made on January 9, 2020, and March 3, 2020, respectively. The stock is forming a series of higher high and higher lows after registering a low of Rs 48.65 as of March 25. Recently, the stock has given a downward sloping trendline breakout on the daily timeframe, which suggests a further bullish momentum. This breakout is confirmed by robust volume. Along with this breakout, the stock has successfully managed to close above its crucial long-term moving average, i.e. 200-day EMA, after a span of over six months. The daily RSI is in a super bullish zone. The MACD is above the zero line and signal line. The MACD histogram suggests bullish momentum. And most importantly, the MACD line crossed the prior swing highs. In the daily timeframe, ADX is 24.13 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI. Considering all the above factors, we recommend you to hold Motherson Sumi Systems with a stop-loss of Rs 104 on a closing basis.
CAPLIN POINT LABORATORIES LTD
CMP : Rs556.80
BSE Code : 524742
I have bought the shares of Caplin Point Laboratories at Rs 435 after the breakout. What should I do now?
- Srivatsa S
BOOK PROFIT IN CAPLIPOINT AT THE CURRENT MARKET PRICE
Caplin Point Laboratories Ltd is currently trading at Rs 556.80. Its 52-week high/low stands at Rs 686/Rs 180 made on August 7, 2020, and March 24, 2020, respectively. The stock has given a downward sloping trendline breakout as on July 31, 2020, and thereafter, witnessed almost 61 per cent upside in six trading sessions. However, on August 7, 2020, the stock has formed a reversal bearish engulfing candlestick pattern, which suggests correction before another northward rally. Along with this bearish formation, the stock has also managed to close below its weekly pivot. Among the momentum indicators, the 14-period daily RSI has cooled-off after touching the extreme overbought 90 zone and at present, its reading is 65.29. The RSI is trading below its 9-day average, which indicates a further downside momentum. Moreover, a negative divergence was also spotted at the daily timeframe on the 14-period RSI, which suggests a limited upside. Hence, we recommend you to book profit in Caplin Point Laboratories at the current market price.
ITD CEMENTATION INDIA LTD
CMP : Rs44.85
BSE Code : 509496
Shall I enter ITDCEM as it has fallen in the last couple of months?
- Sunil Kumar Roy
AVOID BUYING ITD CEMENTATION INDIA FOR NOW ITD
Cementation India Ltd is currently trading at Rs 44.85. Its 52-week high/low stands at Rs 75/Rs 26 made on August 27, 2019, and March 25, 2020, respectively. The stock has given a downward sloping trendline breakdown as on the weekend of March 9, 2018, 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 leading indicator, 14-period weekly RSI, is currently quoting at 47.28 and it is trading below its 9-week average. The weekly RSI is not able to cross 60 mark since January 2018. The weekly MACD is below the signal line since May 2019. 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 ITD Cementation India for now.
UNICHEM LABORATORIES LTD
CMP : Rs 252.95
BSE Code : 506690
I am holding the shares of Unichem Laboratories at Rs 190. Should I hold or book profit?
- Dr. J. Premchandran
BOOK PROFIT IN UNICHEMLAB AT THE CURRENT MARKET PRICE
Unichem Laboratories Ltd is currently trading at Rs 252.95. Its 52-week high/low stands ning bottom candlestick pattern as on the weekend of March 20, 2020, and thereafter, bounced sharply up to its 52-week high level. However, on the weekly timeframe, the stock has formed a reversal shooting star candlestick pattern. Along with this bearish formation, the stock has also managed to close below its weekly. Among the momentum indicators, the 14-period daily RSI has cooled-off after touching the zone of 75 and at present, its reading is 63.14. The RSI is trading below its 9-day average, which indicates a further downside momentum. The fast stochastic is also trading below its slow stochastic line. Considering all the above factors, we recommend you to book profit in Unichem Laboratories at the current market price.