Technical Portfolio Guide

BLUE DART EXPRESS LTD

CMP: Rs1,914.55
BSE Code:526612

I have bought the shares of Blue Dart at Rs 2,030 in July and expected it to bounce back but instead, it fell more. What should I do?
- Sourajeet Mohanty

EXIT BLUE DART EXPRESS AT THE CURRENT MARKET PRICE
Blue Dart Express Ltd is currently trading at Rs 1,914.55. Its 52-week high/low stands at Rs 3,068/Rs 1,860 made on February 19, 2020, and August 17, 2020, respectively. The stock has formed 'Three Black Crows' candlestick pattern on the weekend of November 13, 2015, and thereafter, marked the sequence of lower tops and lower bottoms. Currently, the stock is trading below its 20-week EMA, 50-week EMA, 100-week EMA, and 200-week EMA. The leading indicator, 14-period weekly RSI, is currently quoting at 40.48 and it is trading below its nine-day average. The weekly RSI is not able to cross 60 mark since February 2020. The fast stochastic is also trading below its slow stochastic line on the weekly timeframe. Further, the daily MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, we recommend you to exit in Blue Dart Express at the current market price.

ICICI SECURITIES LTD

CMP: Rs461
BSE Code:541179

I have bought ISEC at Rs 440 for the medium-term. Should I wait or exit with profits?
- Rajendta Bhandari

BOOK PROFIT IN ICICI SECURITIES AT THE CURRENT MARKET PRICE
ICICI Securities Ltd (ISEC) is currently trading at Rs 461. Its 52-week high/low stands at Rs 568.75/Rs 198.20 made on July 16, 2020, and August 23, 2019, respectively. After registering 52-week low, the stock has bounced sharply up to its all-time high level. Considering the daily timeframe, the stock has recently formed a reversal 'Shooting Star' candlestick pattern as on the weekend of July 24, 2020. Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. 20-day EMA and 50-day EMA. Among the momentum indicators, the 14-period weekly RSI has cooled-off after touching the zone of 70 and at present, its reading is 54.77. The RSI is trading below its nine-week average and it is in a falling mode, which indicates a further downside momentum. The fading momentum is also indicated by the MACD histogram that is declining for the last four weeks. Moreover, a negative divergence was also spotted at the weekly timeframe on the 14-period RSI, which suggested a limited upside. Considering all the above factors, we recommend you to book profit in ICICI Securities at the current market price.

SOBHA LTD

CMP: Rs266.20
BSE Code: 532784

Please suggest what should I do with the shares of Sobha Limited, which I bought at Rs 202 for the medium-term? - Sachin Gupta

HOLD SOBHA WITH A STOP-LOSS OF RS 245 ON CLOSING BASIS
Sobha Ltd is currently trading at Rs 266.20. Its 52-week high/low stands at Rs 550/Rs 117.90 made on September 04, 2019, and March 30, 2020, respectively. The stock has formed a Piercing Line candlestick pattern as on the weekend of April 03, 2020, and thereafter, witnessed a pullback rally. Currently, the stock has given a downward sloping trendline breakout on the daily timeframe, formed by connecting swing highs from June 2020. This breakout is confirmed by the above 50-day average volume. Along with this trendline breakout, the stock, after a span of over six months, has managed to successfully close above its crucial medium-term moving average i.e. 100-day EMA. The stock's relative strength index (RSI) on the daily chart has moved above its recent swing high and has marked a fresh 14-period high, which is bullish. The MACD is above the zero line and the signal line. The MACD histogram suggests bullish momentum. And most importantly, the MACD line crossed the prior swing highs. Hence, we recommend you to hold Sobha Ltd with a stop-loss of Rs 245 on a closing basis.

SHILPA MEDICARE LTD

CMP:Rs599
BSE Code:530549

I have bought the shares of Shilpa Medicare at Rs 540 after breakout for the short-term. Should I hold or book profits?
- Nagraj Choutagunta

BOOK PROFIT IN SHILPA MEDICARE AT THE CURRENT MARKET PRICE
Shilpa Medicare Ltd is currently trading at Rs 599. Its 52-week high/low stands at Rs 692.45/Rs 190.80 made on August 11, 2020, and September 04, 2019, respectively. The stock has formed a Hammer candlestick pattern as on the weekend of April 03, 2020, and thereafter, bounced sharply up to the level of Rs 695. Considering the weekly timeframe, the stock has formed a reversal 'Long-legged Doji' like candlestick pattern. Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. 8-day EMA and 13-day EMA. Among the momentum indicators, the 14-period weekly RSI has cooled-off after touching the zone of 80 and at present, its reading is 55.72. The RSI is trading below its nine-day average and it is in a falling mode, which indicates a further downside momentum. Recently, the momentum indicator, MACD line, has crossed under the signal line, which resulted in the histogram turning negative. Further, the daily RSI and daily Stochastic is showing a negative divergence on the daily chart, which suggests limited upside. Hence, we recommend you to book profit in Shilpa Medicare at the current market price.