Technical Portfolio Guide

ZOMATO LTD 

CMP:Rs90.50
BSE Code:543320

Can I buy the shares of Zomato at the current levels for the short term?
- Mohit Gupta

AVOID THE STOCK UNTIL IT SHOWS GOOD STRENGTH
The stock of Zomato is very bearish on the chart as it hit its 52-week low of Rs 84.15 on Tuesday. Since January 18, we are witnessing an aggravated selling, as the stock has formed big red candles along with rising volumes, which indicates a huge number of shares being offloaded. Moreover, the stock trades below the short-term moving averages while the distance between the stock price and the 20-day short-term moving average is over 25 per cent, which suggests strong bearish momentum. Moreover, the trend indicator ADX is well above 30, suggesting a strong downtrend. RSI, too, trades in the bearish zone. Moreover, the stock shows no sign of strength, which can bring buying interest among the market participants. Thus, you can consider avoiding this stock until it shows good strength and look for better opportunities elsewhere.

TATA POWER CO. LTD

CMP: Rs241.05
BSE Code:500400 

I am holding the shares of Tata Power, which I bought at Rs 165. Kindly enlighten me on its price movement in the long term.
- Hitesh Punjabi

HOLD THE STOCK WITH A STOP-LOSS OF RS 200 ON A CLOSING BASIS
Tata Power is one of the leading companies in its segment. In the past one year, the stock has generated about 215 per cent returns to its shareholders. Moreover, the stock is in an uptrend for the short-term too as it has surged over 10 per cent this month when the broader market is under pressure. The stock has formed a symmetrical triangle-like pattern on the weekly chart. Breakout with huge volumes from the level of Rs 250 will see the stock surging over Rs 300 in the short to medium-term. Also, the stock trades above all the key moving averages. These moving averages are upward sloping, which indicates strong upside potential for the stock. The RSI is also in bullish territory. Thus, the stock looks bullish for the long term. However, in case, bad sentiments hit the stock hard, you can see it trading near an important support level of Rs 200. The stock has taken support near this level multiple times before regaining strength. Thus, you can continue holding the stock as long as it trades above Rs 200. However, the stock trading below the mentioned level will imply weakness and you can consider exiting the stock if it falls below Rs 200. 

GUJARAT AMBUJA EXPORTS LTD

CMP: Rs216.15
BSE Code:524226

I’m holding 200 shares of Ramco Cements at an average price of Rs 970. What should I do now? Please suggest.
- Gopala Nyaypathi

CONSIDER EXITING AT CMP
The stock has been falling for the past seven trading sessions. On Monday, it broke down an all-important level of Rs 920, from which, it took multiple supports before bouncing back. Moreover, above-average volume was recorded during the fall, which makes the situation worse as more participants are selling the stock. The stock is trading below all the key short and long-term moving averages, which is not a healthy sign. The distance between its short-term moving average of 20-DMA and its share value is over 15 per cent, which suggests extreme bearishness in the short term. Moreover, the tech- nical indicators do not support the stock, as the RSI trades in the bearish zone and the ADX indicates a strong downtrend of the stock. Since the stock shows no sign of recovery whatsoever, it would be wise to get out of this stock. Thus, you can consider squaring off your position from this stock at CMP.

THE RAMCO CEMENTS LTD.

CMP: Rs 847.90
BSE Code: 500260

I’m holding 200 shares of Ramco Cements at an average price of Rs 970. What should I do now? Please suggest.
- Gopala Nyaypathi

CONSIDER EXITING AT CMP

The stock has been falling for the past seven trading sessions. On Monday, it broke down an all-important level of Rs 920, from which, it took multiple supports before bouncing back. Moreover, above-average volume was recorded during the fall, which makes the situation worse as more participants are selling the stock. The stock is trading below all the key short and long-term moving averages, which is not a healthy sign. The distance between its short-term moving average of 20-DMA and its share value is over 15 per cent, which suggests extreme bearishness in the short term. Moreover, the technical indicators do not support the stock, as the RSI trades in the bearish zone and the ADX indicates a strong downtrend of the stock. Since the stock shows no sign of recovery whatsoever, it would be wise to get out of this stock. Thus, you can consider squaring off your position from this stock at CMP.