Technical Portfolio Guide
TIMKEN INDIA LTD
CMP: Rs 1,124.30
BSE Code: 522113
I have bought the shares of Timken at Rs 970. Should I hold or book profits?
- Arun Kumar
HOLD TIMKEN INDIA WITH A STOP-LOSS OF RS 1,050 ON CLOSING BASIS
Timken India Ltd is currently trading at Rs 1,124.30. Its 52-week high/low stands at Rs 1,157.25/Rs 650 made on August 26, 2020, and March 24, 2020, respectively. The stock has formed a ‘spinning bottom’ candlestick pattern as on March 24, 2020, and thereafter, marked the sequence of higher tops and higher bottoms. Currently, on the daily timeframe, the stock has given a downward sloping channel breakout, which suggests a further upside momentum. This breakout is confirmed by robust volumes. As the stock is at its all-time high, it is trading above all the short and long-term moving averages. The stock is meeting the criteria of Mark Minervini’s trend template. The current stock price is above both the 150-day (30-weeks) and 200- day (40-weeks) moving average price lines. Moreover, 30 and 40-weekly averages are trending up and at the same time, they are in the desired sequence. The daily RSI is in a super bullish zone. The MACD is above the zero line and signal line and the MACD histogram suggests bullish momentum. And most importantly, the MACD line crossed the prior swing highs. Hence, we suggest you to hold Timken India with a stop-loss of Rs 1,050 on a closing basis.
DR REDDY’S LABORATORIES LTD
CMP: Rs 4,429.05
BSE Code: 500124
Please suggest what I should do with Dr Reddy, which I bought at Rs 4,200 after breakout for the short-term.
- Asawari Ranade
BOOK PROFIT IN DR REDDY AT THE CURRENT MARKET PRICE
Dr Reddy’s Laboratories Ltd is currently trading at Rs 4,429.05. Its 52-week high/low stands at Rs 4,754.30/Rs 2,495.40 made on August 10, 2020, and August 29, 2019, respectively. The stock has given a horizontal trendline breakout as on July 29, 2020, and thereafter, bounced sharply up to its all-time high level. Recently, the stock has formed a bearish engulfing candlestick pattern on the daily timeframe. 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 76 and at present, its reading is 53.41. The RSI is trading below its 9-day average and it is in a falling mode, which indicates a further downside momentum. The daily MACD stays bearish as it is trading below its zero line. Considering all the above factors, we recommend you to book profit in Dr Reddy’s Laboratories at the current market price.
INDIA GLYCOLS LTD
CMP: Rs317.20
BSE Code: 500201
I have bought India Glycols above Rs 270. Now, looking at the current market price, I would like to know your suggestion on this stock.
- Kishore Puvvada
HOLD INDIA GLYCOLS WITH A STOP-LOSS OF RS 305 ON CLOSING BASIS.
India Glycols Ltd is currently trading at Rs 317.20. Its 52-week high/low stands at Rs 396.80/Rs 176.15 made on February 24, 2020, and March 24, 2019, respectively. After registering the low of Rs 175.30, the stock has witnessed a pullback rally. Currently, the stock has given a downward sloping trendline breakout. Since the last two trading sessions, the volumes recorded were above the 50-day average, which is a sign of accumulation. 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 stock's relative strength index (RSI) has reached its highest value in the last 14 days, which is bullish. Interestingly, the RSI has given a downward sloping trendline breakout. The trend strength indicator, average directional index (ADX), is at 35.68, which indicates the strength. The +DI is much above the -DI. This structure is indicative of the bullish strength in the stock. Considering all the above factors, we recommend you to hold India Glycols Ltd with a stop-loss of Rs 305 on a closing basis.
HINDUSTAN ZINC LTD
CMP: Rs236.75
BSE Code:500188
I have bought HINDZINC at Rs 210 for the short-term. Should I wait or exit with profits?
- Gautam Manohar
BOOK PROFIT IN HINDUSTAN ZINC AT THE CURRENT MARKET PRICE
Hindustan Zinc Ltd is currently trading at Rs 236.75. Its 52-week high/low stands at Rs 258.80/Rs 122 made on August 11, 2020, and March 13, 2020, respectively. The stock has formed a reversal Doji candlestick pattern as on March 20, 2020, and thereafter, marked the sequence of higher tops and higher bottoms. Recently, the stock has formed a reversal dark cloud cover candlestick pattern and witnessed a correction. Along with this bearish formation, the stock has 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 80 and at present, its reading is 60.52. The momentum indicator, MACD line has recently crossed under the signal line, which resulted in the histogram turning negative. Hence, we recommend you to book profit in Hindustan Zinc at the current market price.