Technical Portfolio Guide
INFOSYS LTD.
CMP: Rs1,583.30
BSE Code:500209
From a long-term perspective, what should we do with Infosys?
- Neeraj Tyagi
EXIT THE STOCK PARTIALLY ON A BOUNCE
After Q4FY22 financial results, the stock has broken down the eight month-long base. Since then, it has been making lower-high candles. Currently, it is trading over 8 per cent below the 20-DMA, and it is over 11 per cent below the 50-DMA. The weekly MACD has declined below the zero line for the first time after June 2020. It also broke the double pattern or a topping formation. The negative divergence in weekly RSI gets the confirmation for bearish implications by closing below the prior swing low. The TSI and KST indicators were also given a sell signal. It closed below the 23.6 per cent retracement level of the prior uptrend. As the stock already formed lower highs and lower lows, it entered into a long-term downtrend. It may test the level of Rs 1,400 in the next few months. It is better to avoid this stock now. If you are holding this stock, exit at least partially in a bounce.
HINDALCO INDUSTRIES LTD.
CMP: Rs488.60
BSE Code:500440
I have Hindalco shares at Rs 518. What should I do?
- Harmanpreet Mahi
EXIT BELOW RS 476
As the stock has broken the double top pattern and is trading below the key moving averages, it entered into a downtrend. It declined nearly 25 per cent from its lifetime high and is about 11 per cent below the 20-DMA. The stock just took support on the 200-DMA and formed a hammer candle. Because of the sharp decline and oversold condition, it may experience a bounce towards your buy price or a little above. It is better to exit at your buy price or with a bit of profit. However, in any case, if it declines below Rs 476, it is better to exit with a loss. All the indicators show the weakness in the stock. The broader market is also on the weaker side.
GINNI FILAMENTS LTD.
CMP: Rs53.05
BSE Code:590025
I bought Ginni Filaments at an average price of Rs 43. What is the correct time to book a profit?
- Rahul Sahay
HOLD THE STOCK WITH THE BUYING PRICE AS A STOP-LOSS
Currently, the stock is consolidating in and forming a cup. It has taken the support of earlier base breakout. In fact, it forms four years 10-month cup with 90 per cent depth. It is trading above the key moving averages. It is 15 per cent above the 50-DMA and 30 per cent above the 200-DMA. The stock is trading above the moving average ribbon. Its price relative strength is strong enough at 79. The MACD is about to give a buy signal on the weekly chart. The ADX (30.22) shows a solid strength in the trend. The stock is trading above the anchored VWAP. The Elder impulse system does not show any bearishness in the stock. In any case, if it closes above the prior pivot of Rs 63.70, it has the potential to move to much higher levels. Maintain your buy price to stop loss and hold the stock.
ASTRAL LTD.
CMP: Rs2,164.95
BSE Code:532830
What is the medium-term outlook for Astral Limited?
- Jiban Das
BULLISH ABOVE RS 2,215
The stock is in consolidation for the past many days. The stock is trading around 200-DMA and about 8 per cent above the 50-DMA. It is 15 per cent lower than the prior pivot level. The price relative strength is poor and needs to improve a lot. The weekly MACD is about to give a buy signal. The RSI is moving in a downward channel. The directional move- ment indicators are in an influx point, and any kind of upside move will give a shaper surge in the price. The true strength indicator and KST are also losing momentum on the daily chart. However, the stock is not showing any bearish signs. If you are holding the stock, keep a stop-loss at Rs 2,090. In any case, if it moves above Rs 2,215, it has the potential to test above the prior pivot levels.