Technical Portfolio Guide
KITEX GARMENTS LTD.
CMP : Rs171.70
BSE Code : 521248
What's your view on Kitex Garments?
- Md Aziz
BUY ONLY ABOVE LEVELS OF RS 180
The stock appreciated 108 per cent in just six trading sessions during the first week of July, on the back of some media reports. After such a big move, currently, the stock is in counter-trend consolidation and retraced 50 per cent of the sharp move. It came out of two years of the stage-1 base with that massive move. As long as it sustains above Rs 152, which is a 61.8 per cent retracement level, the stock may consolidate for some more time. It is trading above all the key moving averages. The stock is trading 28 per cent above the 50-DMA and 53 per cent above the 200-DMA. It is above the Bollinger bands on the weekly chart and it needs to be back into the bands. Because of the 100 per cent move, every indicator shows a positive strength now on the long-term charts. We would recommend buying this stock after the consolidation. It may continue to consolidate for another three to five weeks. It may trade between the zone of Rs 152-Rs 180. An appropriate entry would be above Rs 180. Besides, maintain a stop-loss at Rs 152. Before taking a decision, check the fundamental developments too.
DIVI'S LABORATORIES LTD.
CMP : Rs 4,846.40
BSE Code : 532488
I'm holding the shares of Divi’s Laboratories from levels of Rs 3,600. Is this the right time to book profits?
- Vikas Minchekar
AS LONG AS THE STOCK HOLDS ABOVE THE PRIOR WEEK LOW, KEEP HOLDING
This is the stock that was not much rattled by the fall of March 2020. Currently, the stock is trading at a lifetime high. Since May 2017, the stock has appreciated by 820 per cent and it never made a lower low on higher timeframe charts. It is trading 9 per cent above the 50-DMA, and all the moving averages are trending upside. The weekly ADX (46.26) shows solid trend strength. The momentum is clearly on the upside. Some of the indicators are in an overbought condition; they may experience a counter-trend consolidation in the short to medium term. As long as it trades above the prior week's low, keep holding the stock. If it closes below Rs 4,660, book partial profits and wait for re-entry or, book 25 per cent of the holding at the current price.
DCM SHRIRAM LTD.
CMP : Rs923.80
BSE Code : 523367
Please share your view on DCM Shriram. I'm holding 300 stocks at an average price of Rs 965.
- Kishor Doshi
MAINTAIN A STOP-LOSS OF RS 926
During the last week, the stock has formed a shooting candle at a lifetime high, which is bearish, and it is forming a Doji candle in the current week. Two back-to-back bearish candle formations are showing that the trend is exhausting. The momentum is declining while the weekly RSI is in an overbought condition. These are only cautious signals in the stock. Meanwhile, it is currently holding the 20-DMA support. A close below Rs 926 on a weekly basis is negative for the stock. As you bought at higher levels, maintain a stop-loss at Rs 926, if you are a short-term player.
MOREPEN LABORATORIES LTD.
CMP : Rs65.90
BSE Code : 500288
I had purchased 1,000 shares of Morepen Laboratories at the level of Rs 57. What is the target for this stock?
- Haresh R
HOLD STOCK WITH A STOP-LOSS OF RS 60
The stock is consolidating near a new lifetime high and it is 12 per cent below the prior pivot level. It is hovering around the 20-DMA. It is trading 59.41 per cent above the 200-DMA and 3.09 per cent above the 50-DMA. Its relative price strength is good at 78. The weekly ADX (61.63) shows solid trend strength. However, three consecutive bearish, long upper shadow candles are displaying caution signs. As your purchasing price is much lower than the consolidation range, hold the stock with a stop-loss of Rs 60, which is a seven-week low. On the daily chart, the stock is on trendline support. A close below Rs 64 will test the level of Rs 60. Below Rs 60, it may test much lower levels.