Technical Portfolio Guide
BIOCON LTD
CMP: Rs389.50
BSE Code:532523
Please share your technical view on Biocon for the medium to long-term
- Gopal Yadava
SUPPORT AREA OF RS 355-372 IS CRUCIAL FOR THE STOCK
The stock declined over 20 per cent from its recent highs. It is trading below the long and shortterm averages of 20, 50, and 200-DMAs. Its short and medium-term averages are trending down, which is not a good sign for the stock. The 20-period RSI is below the 50-zone, which indicates that there is no momentum in the stock. The relative price strength (RS) is 25, which shows that the stock is underperforming in the market. The deceleration in the earnings during the last quarter seems worrisome. The stock is reaching an area of support as well as the prior resistance zone on a weekly chart. Most likely, it may take support around the zone of Rs 372-Rs 355 level. In case if it fails to hold the mentioned support zone, it would be better to exit the stock. A bounce from the support can take the stock towards the level of Rs 420 and above.
COAL INDIA LTD
CMP : Rs137.05
BSE Code : 533278
I’m holding 300 stocks of Coal India. Will this stock witness a turnaround in the near term?
- Pankaj Srivastav
STRONG SUPPORT IN THE ZONE OF RS 130-RS 136
Technically, the stock registered a breakout of an inverted head & shoulders pattern in the third week of February. However, the breakout turned out to be a failed one as, during the week, the stock fell below the neckline of the inverted head & shoulders pattern. The stock is now approaching near the 200-DMA, which stands at Rs 132. On Wednesday, it fell below the 50-DMA and a trend line support on the daily chart. The MACD line is below the signal line, and the histogram is showing an increased bearish momentum. The negative movement indicator -DI is above the +DMI and ADX. The stock has also fallen below the 38.2 retracements of the prior uptrend. These indications do not reflect a turnaround in sentiments for the stock. In any case, it fails to take support at Rs 136-Rs 130 zones, and it may test the near previous lows. Any bounce above Rs 147 is a positive sign. In that case, one may continue with the long position
AKZO NOBEL INDIA LTD.
CMP : Rs2266.95
BSE Code : 500710
I have bought 50 shares of Akzo Nobel India at an average cost of Rs 2,370. What should be the target for the stock in the medium-term and also, suggest a stop-loss level for the same.
- Sairama Krishna
MAINTAIN A STOP-LOSS OF RS 2,170.
The stock has delivered a return of about 5 per cent month-to-date while on a year-to-date basis, the stock was down by 5.53 per cent. The price structure of the stock lacks a clear direction. Currently, it is in a consolidation phase. It is forming a bearish shooting star on a weekly chart along with bearish engulfing on the daily chart. It has also formed a lower high. It is holding onto the 50-DMA support. The volume is receding for the last three weeks. Its relative price strength (RS) is very low at 36 and the EPS strength is also poor. The earnings growth is not so impressive in the last quarter. As we have mentioned that the price structure is not clear, it may not give a great return in the near term. The momentum in the stock is likely to pick if the stock manages to close above Rs 2,435. Keep a stop-loss at Rs 2,170 for your holding.
COSMO FILMS LTD
CMP : Rs582.05
BSE Code : 508814
I’m a momentum trader and I believe in pyramiding. I recently did pyramid trading in Cosmo Films. What should be my stop-loss, and should I continue doing pyramiding in this stock?
- Vasan K.
AVOID PYRAMIDING AND 20-DMA COULD BE A GOOD LEVEL TO MAINTAIN THE STOP-LOSS
The stock is up by nearly 27.49 per cent on a year-to-date basis. After breaking out of the stage-2 tight consolidation pattern, which had a depth of almost 24 per cent, the stock had reached the technical target of consolidation breakout pattern in less than three weeks' time. Currently, it is forming a bearish engulfing candle on the weekly chart. As the price is above the weekly Bollinger bands, it may enter into a consolidation phase again. The bullish momentum is declining. Considering that the formation of the bearish engulfing pattern is underway on the weekly timeframe chart, we are not convinced that one should do pyramiding in this stock. Technically, either 20-DMA (Rs 577.50) or 50-DMA (Rs 517) can prove to be a stop-loss. One may do follow stop-loss as per their holding period. For a momentum trader, the 20-DMA could be a good level to maintain the stop-loss.