Watch These Two Stocks for Profit Booking

Posted Date: March 23 2021

Poly Medicure Ltd. 

Poly Medicure Ltd. has been a roaring outperformer as compared to the broader market. It has a top-notch Relative Strength Rating of 91. The stock is up over 60.9% in the last 13 weeks. It is up 241% from a year ago as compared to 68.9% for the Nifty500.

The stock has had a monster run in just 6 weeks post its break out from a 7-week, 20% deep Consolidation. The stock has gained 46% from the ideal buy point of INR 559.

The price rise so far is well supported by institutional buying. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

Last week, the stock fell -2.3% on a 4% greater volume than the 10-week average. It is not unusual to see a leading stock fall or take a pause in its run. But if a stock is down on heavy volume, the selling is not just a normal reaction. That usually indicates that the run might be coming to an end, at least for the short to intermediate term.

The short term support line, the 10-week moving average is still in uptrend. The current price is extended 27.2% and 64.7% from the 10-week and 40-week moving average, respectively.

Taking everything into consideration, the stock looks a bit extended for the short term. While shares could certainly keep running higher, this is a good time to be taking at least partial profits. If you are sitting on a big enough profit, you can wait for the stock to breach the 10-week line.

Tata Chemicals 

Tata Chemicals has been a roaring outperformer as compared to the broader market. It has a top-notch Relative Strength Rating of 90. The stock is up over 53.5% in the last 13 weeks. It is up 228.5% from a year ago as compared to 68.9% for the Nifty500.

The stock has had a monster run in just 17 weeks post its break out from a 11-week, 21% deep Cup With Handle Base. The stock has gained 127% from the ideal buy point of INR 331.

Last week, the stock fell -4.1% on a 4% greater volume than the 10-week average. It is not unusual to see a leading stock fall or take a pause in its run. But if a stock is down on heavy volume, the selling is not just a normal reaction. That usually indicates that the run might be coming to an end.

The short term support line, the 10-week moving average is still in uptrend. The current price is extended 20.2% and 79.9% from the 10-week and 40-week moving average, respectively.

Taking everything into consideration, the stock looks a bit extended for the short term. While shares could certainly keep running higher, this is a good time to be taking at least partial profits. If you are sitting on a big enough profit, you can wait for the stock to breach the 10-week line.

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