Technical Portfolio Guide
BHARTI AIRTEL LTD.
CMP : Rs696.40
BSE Code : 532454
I am holding the shares of Bharti Airtel, which I bought at Rs 610. Kindly enlighten me on its price movement in the medium term.
- Mukesh Jain
HOLD WITH A STOP-LOSS OF RS 675 LEVEL
The stock is trading 7.56 per cent to its lifetime high. It is in counter-trend consolidation for the last 18 trading sessions. After a 29 per cent rise since its August low, the stock retraced 38.2 per cent and formed a base. Within this consolidation, it also formed a higher high and a higher low. This price action shows that the stock is just undergoing a resting phase before it resumes the trend. The stock is trading above the key moving averages and is 3.41 per cent above the 50-DMA as well as 20.18 per cent above the 200-DMA. During the consolidation, it hovered around the anchored VWAP. It faced resistance at the minor swing high in the consolidation. The volume spurt on Wednesday suggests that it may break above the prior minor high. The ADX (31) is above the +DMI while -DMI is showing solid trend strength. The MACD histo-gram also suggests a decline in bearish momentum. A move above Rs 710 can test the previous high of Rs 739. Above this, the medium-term target is placed at Rs 820-Rs 860. Maintain the stop-loss at Rs 675.
ASTRAZENECA PHARMA INDIA LTD.
CMP : Rs3047.45
BSE Code : 506820
Can I buy the shares of AstraZeneca Pharma as it has fallen tremendously?
- Sathappan Ravi Meyyappan
AVOID THIS STOCK
The stock declined 39 per cent from its lifetime high and is trading near the prior major swing low. For the last eight weeks, it is trading in the zone of Rs 3,040-Rs 3,250. It is trading below the key moving aver-ages and all its short, as well as long-term averages, are trending down. Its relative price strength is very low i.e. at just 5. This means that the stock is not only an underperformer but its technical strength is also very poor. The volume has also been below average for the past seven months. The stock retraced exactly 61.8 per cent of the prior uptrend. In any case, if the stock bounces from here or forms a bullish candle in the next two days, it will lead to a reversal. However, a close below Rs 3,000 will be a strong bearish sign for the stock. To buy this stock, it is better to wait till it crosses Rs 3,250. Currently, the stock is in do-or-die condition.
RAIL VIKAS NIGAM LTD
CMP : Rs35.90
BSE Code : 542649
Share your view on RVNL as I have bought its shares at Rs 34 after breakout for the short term.
- RUSHI KUWAR
A CLOSE ABOVE RS 35.60 WILL BE A BIG BULLISH BREAKOUT
The stock is trading near its lifetime high and also, formed an inverted head & shoulder-like pattern, which is bullish. The stock is also in 39 weeks Stage-2 flat base. As it is near its all-time high, the price is above all the key moving averages. It is above the 10, 30, and 40-weekly averages and is trending higher. It is meeting Stan Weinstein's investing rule. The 14-peri-od weekly RSI is in a strong bullish zone. The weekly MACD has just given a fresh buy signal. The massive volume in the current week is indicating a possible breakout of the base. The Elder impulse system shows that the stock is in a bullish set-up. It is also above the anchored VWAP resistance. In short, hold the stock with a stop-loss of Rs 30. A close above Rs 35.60 will be a big bullish breakout. The target for this breakout is near Rs 46.
STRIDES PHARMA SCIENCE LTD
CMP : Rs557.15
BSE Code : 532531
STAR is trading near its 52-week low. May I enter now?
- CA RAM ADWANI
AS LONG AS THE STOCK TRADES ABOVE RS 537-RS 547, BE WITH A POSITIVE BIAS
The stock retraced exactly 61.8 per cent of the prior uptrend and took support for now. Currently, it is trading at a 40-week low. It also declined over 40 per cent from its peak of Rs 999. With today's bounce, it has given the first hope of support. The daily RSI is bouncing from the zone of 40 and its positive divergence is visible. An uptick in +DMI is another positive sign. The MACD histogram is just hovering around the zero line. As long as it protects the zone of Rs 537-Rs 547, there is a chance of testing Rs 600 as it will resume the downtrend if it fails. As the stock is trading at a 40-week low, all the mov-ing averages are trending down and the relative price strength is nowhere visible. If you are a risk-taker for the short term, you can buy this stock with a strict stop-loss of Rs 537. In any case, a close below this level will be a strong bearish sign.