Technical Portfolio Guide
PIDILITE INDUSTRIES LTD.
CMP: Rs2723.90
BSE Code:500331
I am holding Pidilite for the past one year. Should I book profits or add more at the current levels?
- Jayakumar Pillai
HOLD THE STOCK WITH A STOP-LOSS OF RS 2,532
Pidilite Industries is a great company to hold for the long term as it delivered nearly 145.60 per cent returns in just three years. Moreover, the stock has gained nearly 52 per cent in the past one year and outperformed Nifty 50 index by a huge margin. Thus, you can continue to accumulate this good quality stock at every dip. This stock, which hit its all-time high of Rs 2,764 this week, has a strong technical chart. It never closed below its 50-weekly moving average after the third week of September 2020. Moreover, on the daily timeframe, the stock trades above all the key moving averages while the difference between the stock price and 20-DMA is about 7.54 per cent, which suggests good momentum of the stock. We request you to continue holding this stock with a stop-loss of Rs 2,532 on a closing basis, which is also its prior swing high. Stocks falling below the mentioned level will indicate weakness as well as the right time to consider an exit.
USHA MARTIN LTD.
CMP: Rs96.10
BSE Code:517146
What’s your view on Usha Martin for the short term? Is it a good buy at the current levels?
- Anil Rathore
RECOMMENDED BUY ABOVE RS 102.50
The stock has given a breakout from its symmetrical triangle-like pattern on the daily timeframe. However, the follow-up was not as per the expectations. The RSI, at 61, indicates good strength in the stock. Moreover, the +DMI is well above the -DMI and shows good trend strength of the stock. The moving averages are pointing upwards, which suggests the upside momentum of the stock. However, we see that the volumes have been recorded below average, which suggests less trading activity in the stock. The stock will see great momentum if its crosses above Rs 102.50 with a huge volume. Interestingly, this level also happens to be the all-time high level of the stock. Thus, you can consider entering the stock at the above-mentioned level.
AKZO NOBEL INDIA LTD.
CMP: Rs1978.40
BSE Code:500710
Share your views on Akzo Nobel India from a long-term perspective. Is it a good time to buy this stock?
- Rajagopalan S
AVOID THE STOCK FOR NOW
The stock had underperformed the broader market from the long as well as the short-term perspective. It has delivered a mere 14.74 per cent returns to its investors in three years and also, reported negative returns in the past one year. To add further, the stock is in a continuous downtrend for the past four months. On the weekly timeframe, the stock hovers around 200-WMA. It trades below all the key moving averages on the daily timeframe and looks extremely bearish. The RSI, at 39, indicates the weak strength of the stock. Moreover, the volumes have been quite muted, which indicates less interest for the stock among the market participants. The stock is already trading near its 52-week low and shows no signs of recovery. Thus, it would be a wise decision to avoid this stock for now and look for better opportunities elsewhere
TATA CHEMICALS LTD.
CMP: Rs1013.55
BSE Code:500770
Is Tata Chemicals good for investment purposes at the current levels?
- Yash Vashisht
CONSIDER ENTERING AT CMP WITH A STOP-LOSS OF RS 824
It is a fundamentally sound company and has delivered consistent returns to its share-holders. In a three-year period, the stock has delivered over 230 per cent returns to its investors. Last year, the stock reported about 87.11 per cent returns and had outperformed the broader market. The stock has been in a strong uptrend in the last three weeks and gained nearly 16 per cent during the process. It took support at the level of Rs 824 before gaining momentum. The stock is showing bullishness as per the technical indicators as RSI is trading above 60 while ADX indicates strong trend strength on the daily timeframe. Moreover, these moving averages are upward sloping, which indicates upside momentum for the stock. The stock is nearly 13 per cent below its all-time high level, and thus, has a huge potential for upside. You can consider entering at the current level for the long term. However, you should also consider keeping a stop- loss at Rs 824 in the stock if it falls below the aforementioned level.