Technical Portfolio Guide

CENTURY TEXTILES & INDUSTRIES LTD

CMP: Rs911.25
BSE Code:500040 

I am holding the shares of Century Textile, which I bought at Rs 660. Kindly enlighten me on its price movement in the long term.
- Amaresh Chowdhury

HOLD WITH A STOP-LOSS OF RS 754 ON A CLOSING BASIS
The stock was seen forming a base near 38.2 per cent Fibonacci retracement level. The stock had found support at the level of Rs 800 before gaining momentum. Thus, Rs 800-level happens to be a major support level. On the weekly timeframe, the RSI is in bullish territory. Mansfield Relative Strength indicates outperformance of the stock against the broader market. Moreover, the stock trades above all the key moving averages. The moving averages on the daily timeframe have an upward slope, which suggests a bullish view of the stock. However, Elder Impulse System indicates a neutral view for the stock. Furthermore, the volume has decreased, which suggests less activity in the stock since the past few weeks. The stock shall witness a big momentum only when it breaks out Rs 1,000-level, which coincidentally, is also its all-time high level. In case the stock shows weakness, the prior swing low of Rs 754 can be treated as a stop-loss. Thus, we request you to continue holding the stock with a stop-loss of Rs 754 on a closing basis. 

ALEMBIC PHARMACEUTICALS LTD

CMP:Rs820.50
BSE Code:533573

I’m planning to buy the shares of Alembic Pharmaceuticals at the current levels. What should be the target for the stock in the near term?
- Shekhar Choudhary

ENTER ABOVE RS 848 WITH A TARGET OF RS 890-RS 900
The stock formed strong support at the level of Rs 725, from which, it bounced back. Since the prior swing low, the stock has gained nearly 15 per cent in the last few trading sessions. On Tuesday, the stock hit a high of Rs 848 and has slightly corrected since then. It trades above the short-term moving averages but still lies below 200-DMA, which is a long-term moving average. The MACD histogram is rising, which suggests a potential for the upside. Moreover, the positive directional movement indicator (+DMI) is above the –DMI, which suggests a strong strength in the stock. The stock has also recorded a rise in its volume and suggests a possibility for an uptrend. You can consider entering the stock above the level of Rs 848 with a target of Rs 890-Rs 900, which also happens to be a major resistance zone for the stock. However, you are requested to maintain a stop-loss at Rs 825, which is its prior swing high.

POKARNA LTD

CMP: Rs719.80
BSE Code:532486

What’s your view on Pokarna for short-term trading?
- Aman Tiwari

THE STOCK WILL TURN EXTREMELY BULLISH ABOVE RS 747
The stock is seen forming a pennant-like formation on the daily timeframe. It trades near its all-time high and has been bullish for quite some time. It is undergoing a strong uptrend, as indicated by ADX. The +DMI is well above the –DMI, which indicates strong potential for upside. Moreover, RSI is in bullish territory and that indicates good strength of the stock. Mansfield Relative Strength indicator suggests outperformance of the stock against the broader indices. The breakout of the pennant-like pattern is around Rs 747 level, which also happens to be its all-time high level. The stock will turn extremely bullish if it closes above the given level with huge volumes. The stock has the potential to deliver about 20 per cent returns in the short to the medium term above this level, as indicated by the technical chart. 

HINDUSTAN COPPER LTD

CMP : Rs131.85
BSE Code:513599 

How does Hindustan Copper look on the chart for the short to medium-term?
- Diva Samnotra

THE STOCK WILL TURN BULLISH ABOVE RS 137.25
The stock has given a breakout from its symmetrical triangle-like pattern. It recorded a high of Rs 137.25 this week and then, receded a little. The RSI at 60 indicates strong strength in the stock while the trend indicator ADX is rising, which suggests a strong uptrend to follow. Moreover, the stock is nearly 7 per cent higher than its 20-day short-term moving average, which indicates strong momentum of the stock. Elder Impulse System indicates a strong bullish sentiment on the weekly chart as well. Pring’s KST has also given a bullish crossover on the weekly timeframe. However, the stock has slipped over 2 per cent due to bad market sentiment on Thursday. Cutting the story short, the stock can be considered for a long position in the short as well as the medium-term if it closes above its prior swing high of Rs 137.25. The stock has the potential to test its Rs 150 level.