Technical Portfolio Guide

BALAJI AMINES LTD

CMP: Rs912.75
BSE Code: 530999

Please suggest what should I do with Balaji Amines, which I bought at Rs 840 for the medium-term?
- Murthy VVR

BOOK PROFIT IN BALAMINES AT THE CURRENT MARKET PRICE
Balaji Amines Ltd is currently trading at Rs 912.75. Its 52-week high/low stands at Rs 1,054/ Rs 204.10 made on November 24, 2020, and March 25, 2020, respectively. The stock has formed a spinning top candlestick pattern as on the weekend of March 27, 2020, and thereafter, marked the sequence of higher tops & higher bottoms. However, as on the weekend of November 27, 2020, the stock has formed a Doji candlestick pattern and thereafter, witnessed a correction. Along with this bearish formation, the stock has also managed to close below its weekly pivot and 20-day EMA level. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the zone of 76-77 and, at present, its reading is 43.26 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 and signal line. Moreover, there has been a negative divergence between the weekly RSI and the stock price movement, which suggests a limited upside. Hence, we recommend you to book a profit in Balaji Amines at the current market price.

GLENMARK PHARMACEUTICALS LTD

CMP : Rs531.95
BSE Code : 532296

I have bought the shares of Glenmark Pharma at Rs 461 for a short-term. Please suggest what I should do. Also, let me know the revised stop-loss.
- Gaurav Kapoor

HOLD GLENMARK WITH A STOP-LOSS OF RS 495 ON A CLOSING BASIS
Glenmark Pharmaceuticals Ltd is currently trading at Rs 531.95. Its 52-week high/low stands at Rs 572.70/Rs 168 made on June 22, 2020, and March 13, 2020, respectively. After registering a high of Rs 573.05, the stock has witnessed a correction. The correction is halted near the 38.2 per cent retracement level of its prior upward move. Recently, the stock has given a downward sloping trendline breakout on the daily timeframe. This breakout was confirmed by the above 50-day average volume. Currently, the stock is trading above its short and long-term moving averages. These moving averages are trending upside and they are in the desired sequence. 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. Interestingly, the daily RSI has given a downward sloping channel breakout, which is a bullish sign. The MACD is above the zero line and signal line. And most importantly, the MACD line has crossed the prior swing highs. Considering all the above factors, we recommend holding Glenmark Pharmaceuticals with a stop-loss of Rs 495 on a closing basis.

SANOFI INDIA LTD

CMP: Rs7,985.50
BSE Code:500674

I am holding Sanofi bought near its 52-week high but it fell more. What should I do?
- Soma Sundaram Muthukaruppan

EXIT SANOFI INDIA AT THE CURRENT MARKET PRICE
Sanofi India Ltd is currently trading at Rs 7,985.50. Its 52-week high/low stands at Rs 8,999/Rs 5,900.05 made on August 24, 2020, and March 23, 2020, respectively. The stock has formed a bearish belt hold candlestick pattern as on the weekend of August 28, 2020, and thereafter, witnessed a correction. Further, the stock has recently given an upward sloping trendline breakdown on the daily timeframe, which suggests bearish momentum. Currently, the stock is trading below its 20-day EMA, 50-day EMA, and the 100-day EMA level. The leading indicator i.e. the 14-period daily RSI is trading in a falling channel, which is also a bearish sign. The daily RSI has not been able to cross the 60-mark since September 17, 2020. The daily MACD stays bearish as it is trading below its zero line and signal line. Moreover, on the directional index, the bearish strength is still higher than the bullish strength as +DI is much below the -DI. Considering all the above factors, we recommend you to exit Sanofi India at the current market price.

INDIAMART INTERMESH LTD

CMP : Rs5,307.45
BSE Code : 542726

I have bought the shares of IndiaMART at Rs 3,250. Should I hold or book profits?
- Khushboo Parikh

HOLD INDIAMART WITH A STOP-LOSS OF RS 4,500 ON A CLOSING BASIS
IndiaMART InterMESH Ltd is currently trading at Rs 5,307.45. Its 52-week high/low stands at Rs 5,485/Rs 1,641.20 made on September 28, 2020 and March 25, 2020, respectively. The stock has given a downward sloping trendline breakout as on the weekend of July 31, 2020, and thereafter, witnessed almost 119 per cent upside momentum in the next 9 weeks. After registering a high of Rs 5,487.50, the stock has witnessed a minor correction. During this corrective phase, the volume was mostly below the 50-week average volume, which suggests that it is just a routing decline after a robust move. The correction is halted near the 23.6 per cent retracement level of its prior upward move (Rs 2,060-Rs 5,487.50). Currently, the stock is trading above its all short and long-term moving averages. Interestingly, on the daily timeframe, the leading indicator RSI has surged above the 60 mark for the first time ever since October 12, 2020. The daily MACD is above the zero line and signal line. Considering all the above factors, we recommend you to hold IndiaMART InterMESH with a stop-loss of Rs 4,500 on a closing basis.