Technical Portfolio Guide

MOREPEN LABORATORIES LTD. 

CMP : Rs 31.55
BSE Code : 500288

I’ve bought 500 shares of Morepen Labs at an average price of Rs 30.60. What is the technical outlook for the stock?
- S K Sahu

EXIT IN MOREPEN LABS AT THE CURRENT MARKET PRICE
The stock has provided multifold returns in a span of just 12 weeks as the price rallied from March 2020 lows of Rs 7.20 to the high of Rs 34.95 in June 2020. After this spectacular run-up, the stock, which entered into a sideways phase, registered identical highs & higher bottoms on the weekly timeframe. This led to the formation of an ascending triangle-like pattern and within this ascending triangle pattern, there was a formation of a symmetrical triangle-like pattern. The breakout of the symmetrical triangle-like pattern was witnessed in the second week of March 2021 and thereafter, the stock rallied to register a new 52-week high. However, the stock failed to record a successful breakout of the ascending-like triangle pattern. As a result, we would suggest to exit the stock. Further, the indicators are not showing great strength as the daily MACD is bearish and also, below the signal line. Besides, the MACD histogram is suggesting a pickup in the downside momentum. Hence, we recommend you to exit the stock at the current market price.

MAGMA FINCORP LTD.

CMP: Rs 113.30
BSE Code: 524000

Kindly share your perspective on Magma Fincorp. Is this the right time to buy this stock?
- Johnson Thomas

AVOID THIS STOCK FOR NOW
The stock has hit multiple upper circuits in the month of February. It has recorded gains of nearly 180 per cent on a year-todate basis. However, it seems that the fortune of the stock is now taking a turn as the stock has formed a bearish engulfing pattern right at the top of the daily chart as of March 12 and thereafter, it was seen sliding down. On the way down, the stock has breached its important short-term moving average of 20-DMA. The daily MACD is bearish as it is below the signal line. In addition to this, the MACD histogram is suggesting a pickup in the downside momentum. Besides, the Elder impulse system is in a sell mode. Hence, from a short-term perspective, the stock looks fragile.

SYNGENE INTERNATIONAL LTD. 

CMP : Rs 529.20
BSE Code : 539268

What’s your medium-term perspective of Syngene International?
- Amit Chakraborty

AVOID BUYING SYNGENE INTERNATIONAL FOR NOW
The stock has witnessed a scintillating rally from March 2020 lows to January 2021 highs. It has gained 200 per cent in a span of 39 weeks. However, post this sharp move from the lower levels, the stock in recent times, is giving signals of topping out as it is forming a rounding top or inverted cup pattern. Further, the stock has slipped below its important moving averages of 50, 100 and 200-DMAs. The 50-DMA has started to trend downward while 100-DMA has flattened out. Moreover, the stock is below the 30 and 10 weekly averages, which is bearish on the weekly chart. The weekly MACD histogram shows that bearish momentum has increased. On the weekly scale, the RSI is exhibiting a range shift as after breaching the 60-mark on RSI in January 2021, the RSI resisted around the 60-mark and slipped to the 40-mark. So, now, either the stock may enter into a sideways phase i.e., 40-60 range on RSI or if the level of 40 is breached, then it would result in a further correction. Hence, considering all the above factors, we recommend you to avoid buying Syngene International.

BAJAJ AUTO LTD.

CMP: Rs 3501.85
BSE Code: 532977

I’ve been holding Bajaj Auto for almost two years now. Is this a good time to book profit?
- Prashant mishra

MAINTAIN TRAILING STOP-LOSS OF RS 3,378
The stock fell almost 20 per cent from its recent top and it has retraced about 34 per cent of March-January rally. The critical 38.2 retracement support is at Rs 3,378 while the 30-weekly average is at Rs 3,400; these will act as an important support for the stocks. You can place this zone as a trailing stop-loss. Currently, the stock is trading below the 20 and 10-weekly averages. The MACD has given a sell signal while the histogram shows the increasing bearish momentum. The ADX is declining, and the negative movement indicator -DMI is about to crossover the +DMI, which is a negative sign for the stock. The RSI is below the 50 zone, and a close below 48 will signal the bears' dominance. Besides, the Elder impulse system gave a sell signal three weeks ago. Pring's KST is about to give the sell signal if the stock closes below Rs 3,500. It is time to be cautious about your position. We recommend taking out partial profit at the current levels.