Technical Portfolio Guide
VISA STEEL LTD.
CMP : Rs11.76
BSE Code : 532721
Is this a good time to invest in Visa Steel for the medium term?
- Prasanna Murthy
A RISKY BET ABOVE RS 12, IT MAY TEST RS 18-RS 20
With recent institutional purchases, the stock is in the limelight. This penny stock is not a good stock for trend followers or fundamental believers. The stock has a history of trading in upper and lower circuits in the recent past. The series of circuits will not provide liquidity to the investors. Technically, the stock is trading above the 50 and 200-DMAs. The stock is also above the 20-DMA and is trending higher. For the last three days, it is hitting the upper circuit and because of this, all the momentum indicators are positive. Liquidity is a risk in this stock. In any case, if it sustains above Rs 12, it can test Rs 18-Rs 20 levels. Maintain a stop-loss at Rs 9.
PURAVANKARA LTD.
CMP : Rs128
BSE Code: 532891
Please share a technical view of Purvankara Limited.
- Nirav Gandhi
BUY ABOVE RS 117 WITH A STOP-LOSS OF RS 100
The stock has broken out of a nine-week flat base in stage-2 with above-average volume. Its price relative strength (RS) is fairly good at 75. It is trading comfortably above the key moving averages. All the long and short-term moving averages are trending up. It is meeting Mark Minervini's trend set up rules as well as Daryl Guppy's MMA set up. On a weekly chart, all the indicators are showing strong momentum. The MACD line is sharply above the signal line. The RSI is above the prior minor swing high and in a bullish zone. The ADX (36.07) shows a solid strength in the trend. The stock is decisively above the anchored VWAP. The Elder impulse system and Pring's KST have given a buy signal. As the realty sectors are in the leading quadrant in the relative rotation graph, the stocks in the sectors are also likely to outperform the broader market. One can accumulate this stock above Rs 117 with a stop-loss of Rs 100. The short to medium-term target is placed at Rs 150.
IRCON INTERNATIONAL LTD.
CMP : Rs 44.55
BSE Code : 541956
I'm holding 500 shares of Ircon International at Rs 43; what should be the target for this stock on the upside?
- Shikhar Garg
MAINTAIN A STOP-LOSS AT RS 42
This is technically a non-trending stock since its listing. The stock is trading between Rs 35 and Rs 55 zone for the last three years. Because of its non-trending behaviour, its relative price strength is very poor i.e. at just 15. The volume has also declined in the past six months. It is trading below the long-term moving averages. On a daily chart, the MACD line is just above the zero line. The +DMI is above the -DMI and ADX. The ADX (16.66) is showing insufficient trend strength. In any case, if the stock sustains above Rs 46.25, continue holding it. However, a fall below 41 is negative. It is better to maintain a stop-loss at Rs 42 or at your purchase price.
EVEREST KANTO CYLINDER LTD.
CMP : Rs123
BSE Code : 532684
I'm holding Everest Kanto Cylinder at an average price of Rs 132. What should be my next course of action?
- Kalimuthu Arumugam
BIG BREAKOUT LIKELY ABOVE RS 134
The stock is forming a 21-week cup pattern and trading 6 per cent to the prior pivot level. It meets many of the CANSLIM characteristics. Its price relative strength (RS) is at 87, and its EPS strength is at 82. The stock is also trading above the key moving averages. It is trading 3.39 per cent above the 20-DMA and 15.85 per cent above the 50-DMA. The weekly MACD has given a buy signal, and the RSI is in a strong bullish zone. The ADX (28.16) shows decent trend strength. It moved above the anchored VWAP on the daily chart. The Elder impulse system has given a fresh buy signal. Pring's KST is also showing bullishness. In short, the stock is forming a bullish pattern, and a breakout will be a big positive for the stock. A move above Rs 134 is a big breakout, and it can test Rs 178 in the short term. Maintain a stop-loss at Rs 118.