Technical Portfolio Guide
DCB
CMP: Rs76.40
BSE Code:532772
I have bought the shares of DCB Bank for the short-term at Rs 85. I don’t want to exit at loss. What should I do?
- Vijaya Kumar
EXIT IN DCB BANK AT THE CURRENT MARKET PRICE
DCB Bank Ltd is currently trading at Rs 76.40. Its 52-week high/low stands at Rs 204.55/Rs 58.10 made on January 16, 2020, and May 26, 2020, respectively. The stock had formed a reversal bearish engulfing candlestick pattern as on August 31, 2020, and thereafter, marked the sequence of lower tops and lower bottoms. Considering the daily timeframe, the stock has recently given a flag pattern breakdown, which suggests the continuation of bearish momentum. Further, the stock is trading below its short and long-term moving averages and all are in a falling mode. Also, the stock is trading below its 200-day EMA since January 2020, which is a bearish sign. Talking about the indicators, the daily RSI has registered a high of Rs 73.55 in the month of August and thereafter, marked a lower high and a lower low. On the directional index, the -DI is above the ADX and +DI, which suggests a bearish strength, is higher than the bullish strength. Considering all the above factors, we recommend to exit in DCB Bank at the current market price.
HDFC LIFE INSURANCE COMPANY LTD
CMP : Rs 562.50
BSE Code : 540777
I have bought the shares of HDFC Life Insurance above Rs 480. Now, I would like to know your suggestion on this stock looking at the current market.
- Chirag Sheth
BOOK PROFIT IN HDFC LIFE AT THE CURRENT MARKET PRICE
HDFC Life Insurance Company Ltd is currently trading at Rs 562.50. Its 52-week high/low stands at Rs 647.50/Rs 339.15 made on July 28, 2020, and March 23, 2020, respectively. After registering a high of Rs 647.60 as of July 28, 2020, the stock has marked the sequence of lower high and lower lows. Currently, the stock is trading below its short and medium-term moving averages, i.e. 20-day EMA, 50-day EMA, and 100-day EMA. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the zone of 64-65, and currently, it is quoting at 48.93. The RSI is trading below its 9-week average and it is in a falling mode, which suggests a further bearish momentum. The weekly MACD stays bearish as it is trading below its zero line and the histogram is suggesting a pickup in the downside momentum. The directional indicators on the weekly chart have seen a bearish crossover as -DI has crossed over +DI. Considering all the above factors, we recommend to book profit in HDFC Life Insurance for now.
TORRENT POWER LTD
CMP : Rs 294.90
BSE Code : 532779
Torrent Power fundamentally looks promising. Can I enter the scrip now?
- Deepinder Kaur
AVOID BUYING TORRENT POWER FOR NOW
Torrent Power Ltd is currently trading at Rs 294.90. Its 52-week high/low stands at Rs 368.75/Rs 239.65 made on August 20, 2020, and March 13, 2020, respectively. The stock has witnessed correction after hitting the 52-week high. Thereafter, it gave a multiple point upward sloping trendline breakdown at Rs 327 and gave almost continuous downfall, where the stock hit below its major support of Rs 321 and Rs 312 levels. Currently, the stock is trading below its short and long-term moving averages i.e. 20-day EMA, 50-day EMA, 100-day EMA, and 200-day EMA. The weekly RSI is in bearish territory and it’s in a falling mode. The weekly MACD stays bearish as it is trading below its zero line and signal line. The histogram on the weekly chart is suggesting a pickup in the downside momentum. Moreover, the weekly stochastic is also suggesting a bearish momentum as the fast stochastic is trading below its slow stochastic. Hence, we recommend to avoid buying Torrent Power for now.
TIMKEN INDIA LTD
CMP: Rs 1,020.25
BSE Code:522113
I am holding 50 shares of Timken bought at an average price of Rs 920. What should I do now?
- Abhishek Yadav
BOOK PROFIT IN TIMKEN INDIA AT THE CURRENT MARKET PRICE
Timken India Ltd is currently trading at Rs 1,020.25. Its 52-week high/low stands at Rs 1,228.90/Rs 650 made on September 07, 2020, and March 24, 2020, respectively. Considering the weekly timeframe, the stock has given a downward sloping trendline breakout on the weekend of August 28, 2020. However, it did not sustain at higher levels and formed a reversal spinning top candlestick pattern as on the weekend of September 04, 2020. Thereafter, the stock has witnessed correction. 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. Interestingly, in the recent pullback, the leading indicator i.e. the 14-period weekly RSI has reversed from the 60 mark. As per the RSI range shift rules, if RSI fails to cross the level of 60, has resulted in a range shift of RSI. Further, on the weekly chart, the price has made two higher highs in recent times but most of the indicators, including RSI, have not reached the prior highs. The MACD line has also crossed under the signal line, which resulted in the histogram turning negative. Considering all the above factors, we recommend to book profit in Timken India at the current market price.