Technical Portfolio Guide

CADILA HEALTHCARE LTD
CMP : Rs437.50
BSE Code : 532321

I have bought the shares of Cadila after a breakout at Rs 300 for the medium-term. Can I book profit now?
- Ashwin Shah

BOOK PROFIT IN CADILAHC AT THE CURRENT MARKET PRICE
Cadila Healthcare Ltd is currently trading at Rs 437.50. Its 52-week high/low stands at Rs509.35/Rs 212.70 made on January 15, 2021 and March 13, 2020, respectively. The stock has formed a hammer candlestick pattern as on the weekend of March 13, 2020 and thereafter, witnessed over 100 per cent upside in the next 10 months. However, the stock has formed a Doji candlestick pattern as on the weekend of January 15, 2021 and thereafter, witnessed a correction. During this corrective phase, the stock has given a breakdown of upward sloping trendline support on the daily chart, which indicates a further downside momentum. Currently, the stock is trading below its 20-day EMA, 50-day EMA and 100-day EMA level. Among the momentum indicators, the 14-period weekly RSI has cooled off after touching the zone of 70-72 and, at present, its reading is 49.96. The RSI is trading below its 9-week 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 on both the weekly and the daily timeframe. Considering all the above factors, we recommend you to book profit in Cadila Healthcare at the current market price. 

SIYARAM SILK MILLS LTD
CMP : Rs221.55
BSE Code : 503811

I am holding the shares of Siyaram Silk at Rs 166 for a short-term. Should I hold or book profit?
- Mahesh Chandra Pathak

HOLD SIYSIL WITH A STOP-LOSS OF RS 200 ON A CLOSING BASIS
Siyaram Silk Mills Ltd is currently trading at Rs 221.55. Its 52-week high/low stands at Rs 229.70/Rs 94 made on February 24, 2021 and May 19, 2020, respectively. The stock has formed a hammer candlestick pattern as on the weekend of May 22, 2020 and thereafter, marked the sequence of higher tops & higher bottoms. Recently, the stock has given a downward sloping trendline breakout on the daily chart, which indicates a further bullish momentum. All the moving averages-based trade set-ups are showing a bullish strength in the stock. Daryl Guppy’s multiple moving averages is also suggesting a bullish momentum in the stock. The leading indicator, RSI is in a bullish territory on both the weekly and the daily timeframe. On the daily timeframe, ADX is currently quoting 17.34 and has recently surged above the -DI. The directional indicators continue in the ‘buy’ mode as +DI continues above the –DI. The weekly and daily MACD stays bullish as it is trading above its zero line and signal line. Considering a robust technical structure, we recommend you to hold Siyaram Silk Mills with a stop-loss of Rs 200 on a closing basis.

ORACLE FINANCIAL SERVICES SOFTWARE LTD
CMP : Rs3,023.80
BSE Code : 532466

Can I buy the shares of Oracle Financial Services Software for a short-term at the cur-rent levels?
- Nalin Kurani

AVOID BUYING OFSS FOR NOW
Oracle Financial Services Software Ltd is currently trading at Rs 3,023.80. Its 52-week high/low stands at Rs 3,544.20/Rs 1,532.50 made on January 14, 2021 and March 24, 2020, respectively. The stock has formed a spinning top candlestick pattern as of January 13, 2021 and thereafter, witnessed a correction. During this corrective phase, the stock has given a breakdown of the rising channel pattern and thereafter, fell sharply along with the rising volume. This indicates a further bearish momentum. The leading indicator i.e. the 14-period weekly RSI is currently quoting at 45.43 and it is trading below its 9-week average. The daily RSI is in a super bearish zone. On the directional index, the bearish strength is higher than the bullish strength as +DI is much below the -DI. 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 avoid buying Oracle Financial Services Software Ltd for now.

MSTC LTD
CMP : Rs 286.55
BSE Code:542597

I am holding the shares of MSTC bought at Rs 225. What to do now?
- Shrirang Joshi

BOOK PROFIT IN MSTC AT THE CURRENT MARKET PRICE
MSTC Ltd is currently trading at Rs 286.55. Its 52-week high/low stands at Rs 400/Rs 72.60 made on February 09, 2021 and March 30, 2020, respectively. The stock has given a downward sloping trendline breakout as of January 01, 2021 and thereafter, witnessed a sharp upside. The stock has witnessed nearly 130 per cent upward momentum in just 27 trading sessions. After this sharp upward move, the stock has formed a spinning top candlestick pattern as of February 09, 2021 and thereafter, witnessed a correction. Besides, on the weekly chart, the stock has formed a shooting star candlestick pattern, which indicates a further correction before another northward rally. The momentum indicators are also supporting the current price structure. The daily RSI is currently quoting at 55.61 and it is in trading below its 9-day average. The weekly RSI is on the verge of giving a bearish crossover. In addition to this, there has been a negative divergence between the daily stochastic and the stock price movement, which suggests a limited upside. Hence, we recommend you to book profit in MSTC Ltd at the current market price.