Technical Portfolio Guide

HEMISPHERE PROPERTIES INDIA LTD

CMP : Rs150.70
BSE Code : 543242 

I'm planning to buy 300 stocks of Hemisphere Properties at the current levels. What should be the target for the stock in the near term?
- Dilip Pandya

A WEEKLY CLOSE ABOVE RS 152-159 WILL BE A BIG BULLISH BREAKOUT
For the last eight months, the stock has been trading in Rs.160-124 range. Currently, it is near the resistance level. It formed higher highs and higher lows in the past 55 days. The volumes are above average in the present week. As it is in prolonged consolidation, the relative price strength is poor. The stock is also above the short and long term moving averages. The stock is trading 8 per cent above the 50-DMA and 4.20 per cent above the 20-DMA. It is also above the Anchored VWAP support and resistance. Pring's KST has given a fresh buy signal on a daily chart. The 20-period weekly RSI is above the 50 zone and 50-week moving average worked as support in the recent past. A weekly close above the Rs 152-159 is a positive breakout for the stock. Above this zone of resistance, the stock can test Rs 170-184 levels. But, avoid if it closes below the prior week's low. As long as it trades in the range, also avoid the stock for purchase. 

AARTI DRUGS LTD.

CMP : Rs553.75
BSE Code : 524348 

Can I buy the shares of Aarti Drugs as it has fallen tremendously?
- Rajeev Ray

AVOID IT FOR NOW
The stock declined 46.4 per cent from its October 2020 top. It has broken down the descending triangle in August. Since then, it is hovering around the breakdown level, and it has resumed the downward move for the last two weeks. It also declined below the 50 per cent retracement level of the prior uptrend. With a decline of over 46 per cent, the price is below all key long and short-term averages. Weekly RSI (39.37) is in a bearish zone. MACD line is below the signal line, and zero line and the momentum is clearly bearish. The -DMI is above the prior swing high is not a good sign. None of the indicators shows a positive bias on the stock. The stock is below the VWAP support, and MA ribbon and MACD line below the zero line shows bearish implications. If the stock closes below Rs 566 on a weekly basis, it can test Rs 457. We need to wait for a base formation to buy this stock. Avoid it for now.

UNICHEM LABORATORIES LTD.

CMP : Rs212.40
BSE Code : 506690 

I'm holding Unichem Laboratories for the past one year. Should I exit or add more at the current levels?
- Vikash Yadav

AVOID FRESH BUY AT CURRENT LEVEL
The stock is almost at your entry level. This stock declined by 43.45 per cent from its recent top and below the 50 retrace-ment level of the prior uptrend. Importantly, it is below all key moving averages. and has been declining continuously for the past 25 weeks. Weekly RSI (27.65) is in a clear bearish zone and the MACD line has also declined below the prior swing low. The relative price strength is very poor, and even the Mansfield Relative Strength indicator is also well below the zero line and shows weaker performance than the broader market. The Elders impulse system shows a strong bearishness in the stock, which is trading 11.79 per cent below the 20-DMA. Unless it closes at least above the prior week's high, it is better to avoid the stock to fresh buy. In any case, it sustains below Rs 227, it can test Rs 192 levels. It may form a base at these levels, where you can consider accordingly. 

KARNATAKA BANK LTD.

CMP : Rs78.30
BSE Code : 532652 

What's your view on Karnataka Bank from a medium-term perspective? Is it a good time to buy now?
- Ashay Chhaparia

ABOVE THE LEVEL OF RS 84 IT CAN TEST RS 100-115 IN THE MEDIUM TERM
The stock has broken out of an inverted head and shoulder pattern after a Stage-1 base. Before that, the stock declined 80 per cent from the top. All the indicators are in a bullish setup as the weekly ADX (26.68) shows a solid trend strength. MACD is also showing a stronger bullish momentum, while the 20 periods RSI (65.13) is in a strong bullish zone and above the prior swing highs. The weekly Elders impulse system has given a fresh buy signal. The Mansfield Relative Strength Indicator moved above the zero line during the week, showing the stock's outperformance compared to the broader market. Pring's KST indicator also shows a fresh bullish signal on the weekly chart. In the short term, it may face some resistance at Rs 84 levels. Above this level, it can test Rs 100-115 levels in the medium term.