Technical Portfolio Guide

RAYMOND LTD.

CMP : Rs426.50
BSE Code : 500330 

I’m holding 350 shares of Raymond Ltd bought at an average price of Rs 410. Should I continue to hold? What should be the stop-loss?

- Akash Sukre

KEEP A STOP-LOSS OF RS 415.65
The stock is moving in an upward channel since March 2020 low. Before that, it declined sharply by 75 per cent from the high of November 2019. It retraced 38.2 per cent and is facing resistance. Currently, it’s trading on 50-DMA support. After two weeks of an upside move, currently, it is forming a counter-trend consolidation. The MACD histogram shows flat to negative momentum. The RSI, which is at 57, is indicating the possibility of sustaining at the current levels. Your buy price is exactly at the current swing low. This level has also acted as resistance earlier. The Elder impulse system shows that it is in a neutral zone. The stock is currently trading 2.50 per cent above the 20-DMA, which is at Rs 415.60. You can maintain 20-DMA as a stop-loss and hold. However, your strict stop-loss must be a little above your buy price.

GODFREY PHILLIPS INDIA LTD.

CMP : Rs1,049.75
BSE Code : 500163

I had bought Godfrey Phillips India at Rs 1,050 sometime back. Should I continue to hold this stock?
- Ramalinga Reddy

HOLD THIS STOCK WITH A STOP-LOSS AT RS 940-950 ZONE 
The stock is trading a 77-week consolidation between the parallel highs and lows. The current level of Rs 1,072 has mul-tiple resistances. It is trading above the 50-DMA and 6.11 per cent above the 20-DMA. The Elder impulse system and Pring's KST have given buy signals. The daily MACD has moved above the zero & signal lines and also, gave a buy signal. The weekly RSI is almost at the 60 zone. As the stock is undergoing a prolonged consolidation, the relative price strength is poor at 25. The above-average volume in the current week indicates a possible breakout. A move above Rs 1,072-Rs 1,110 will be a big breakout. After the breakout, the stock may experience a sharp move on the upside. Hold the stock with a stop-loss at Rs 940-Rs 950 zone.

HPL ELECTRIC & POWER LTD.

CMP :  Rs72.95
BSE Code : 540136

What’s your outlook for HPL Electric & Power? Is it a good time to buy this stock?
- Abhimnew Kumar

FRESH PURCHASE SUGGESTED ONLY ABOVE RS 74.70
The stock has been moving in higher top & higher bottom fashion and is in a clear uptrend since March 2020 low. It formed a base three weeks ago around Rs 67. Since then, it was also forming higher lows on an increase in volume. The relative price strength has also improved to 64. The stock is below the 50-DMA and the MACD histogram is showing negative momentum. The ADX 42.28 shows strength in the weekly trend. The RSI is above the 60 zone, showing good strength. In any case, if the stock moves below the recent low of Rs 67, avoid this stock. If you are a new buyer in this stock, wait till it moves above the ten-weekly average of Rs 74.70 and keep the stop-loss at Rs 67. 

DABUR INDIA LTD.

CMP : Rs640.35
BSE Code : 500096 

Is Dabur a good pick for short term trading at the current levels?
- Digpal Rawat

BUY THIS STOCK ONLY ABOVE THE ZONE OF RS 640-RS 652
The stock is trading at a lifetime high and it is in a clear uptrend. It is trading above the key moving averages i.e. around 6.13 per cent above the 50-DMA and 13.77 per cent above the 200-DMA. It is 2.61 per cent above the 20-DMA. Since the stock is near the highest level, all the technical parameters look bullish. However, the momentum is declining on the daily chart. The daily MACD histogram is almost at the zero line. Any decline below zero means that it is going to enter into a consolidation. For the last nine days, the stock has been forming an indecisive and bearish candle, which is an indication of the exhaustion of a trend. Wait for the consolidation to end in order to buy this stock. Buy this stock above the zone of Rs 640-Rs 652.