Technical Portfolio Guide
SUNDRAM FASTENERS LTD
CMP : Rs439.70
BSE Code : 500403
I have bought Sundram Fasteners at Rs 380 for the short-term. Should I wait or exit with profits?
- Paromita Dutta
BOOK PROFIT IN SUNDRAM FASTENERS AT THE CURRENT MARKET PRICE
Sundram Fasteners Ltd is currently trading at Rs 439.70. Its 52-week high/low stands at Rs 533/ Rs 249 made on January 27, 2020, and March 25, 2020, respectively. The stock has given a neckline breakout of Adam & Adam double bottom pattern as on April 16, 2020, and thereafter, marked the sequence of higher tops and higher bottoms. Recently, the stock has formed a reversal Doji candlestick pattern on the weekend of August 28, 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 overbought zone and at present, its reading is 49.46. The RSI is trading below its 9-day average and it is in a falling mode, which indicates a further downside momentum. Moreover, there has been a negative divergence between the daily RSI and the stock price movement, which suggests a limited upside. Hence, we recommend you to book profit in Sundram Fasteners at the current market price.
JUBILANT FOODWORKS LTD
CMP : Rs 2,292.75
BSE Code : 533155
I am holding Jubilant FoodWorks for the medium-term, bought after the breakout at Rs 1,785. What should I do now?
- Yusuf Bhanpurawala
HOLD JUBLFOOD WITH A STOP-LOSS OF RS 2,070 ON CLOSING BASIS
Jubilant FoodWorks Ltd is currently trading at Rs 2,292.75. Its 52-week high/low stands at Rs 2,310/Rs 1,141.80 made on September 03, 2020 and March 19, 2020, respectively. The stock has formed a reversal Spinning Bottom candlestick pattern as on the weekend of March 20, 2020, and thereafter, marked the sequence of higher highs and higher lows. As the stock is trading near its all-time high, it is also 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 200day (40-weeks) moving average price lines. Moreover, the 30 and 40-weekly averages are trending up and at the same time, they are in the desired sequence. The leading indicator, RSI, is in a rising trajectory in both the weekly and the daily timeframe. The MACD stays bullish as it is trading above its zero line and signal line. The trend strength is extremely high as the ADX is above 50 and -DI is much below the +DI and ADX. Considering all the above factors, we recommend you to hold Jubilant FoodWorks with a stop-loss of Rs 2,070 on a closing basis.
TV18 BROADCAST LTD
CMP : Rs 30.85
BSE Code : 532800
Earlier, I bought stocks of TV18 Broadcast at higher levels, and presently, the stock is quoting at lower levels. What should I do?
- Seenivasan Kanna
EXIT IN TV18BRDCST AT THE CURRENT MARKET PRICE TV18
Broadcast Ltd is currently trading at Rs 30.85. Its 52-week high/low stands at Rs 41.70/Rs 11.85 made on July 22, 2020, and March 25, 2020, respectively. The stock has formed a reversal Dark Cloud Cover candlestick pattern as on March 25, 2020, and thereafter, bounced sharply up to the level of Rs 41.10. Considering the daily timeframe, the stock has recently given a breakdown of Adam & Adam double top pattern, which suggest correction before another northward rally. The stock is currently trading below its weekly pivot and short-term moving averages, i.e. 20-day EMA and 50-day EMA. Among the momentum indicators, the RSI is currently quoting at 37.81 and it is trading in the downward sloping channel. The momentum indicator MACD line has crossed under the signal line, which resulted in the histogram turning negative. Considering all the above factors, we recommend you to exit in TV18 Broadcast at the current market price
CCL PRODUCTS (INDIA) LIMITED
CMP : Rs 262.10
BSE Code : 519600
What are the prospects of CCL? I have bought the shares at Rs 235 for the short-term.
- Krishnasamy Jothiarulanandam
BOOK PROFIT IN CCL AT THE CURRENT MARKET PRICE
CCL Products (India) Ltd is currently trading at Rs 262.10. Its 52-week high/low stands at Rs 293.8/Rs 137.25 made on August 25, 2020, and March 24, 2020, respectively. The stock is forming a series of higher high and higher lows after registering a low of Rs 137 as on March 24. Recently, the stock has formed a reversal bearish engulfing candlestick pattern. Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving average, i.e. 13-day EMA and 20-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the overbought zone and at present, its reading is 52.37. The RSI is trading below its 9-day average, 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 CCL Products (India) at the current market price.