Here are answers to readers’ queries on the performance of their stock holdings.
What is the prospect of Hindalco? Can I buy it at current levels?
Rosh Mayani
Hindalco Industries (₹242.7) : The long-term outlook is up for the stock of Hindalco Industries. Medium-term trend is also up. However, the short-term trend has been down for the stock since registering a new high of ₹278.5 in October 2017. While trending down, the stock breached key supports at ₹250 and ₹240 and landed at the next vital base level of ₹230 in early December.
Positive divergence and the formation of a bullish engulfing candlestick pattern at the key base level changed the stock’s direction. The stock gained 2.6 per cent, witnessing buying interest on Friday, breaching its immediate resistance at ₹240.
Traders with a short-term perspective and with a high risk appetite can consider buying the stock at current levels with a stop-loss at ₹228. The stock can trend upwards and test resistance at ₹250 initially. A strong rally beyond ₹250 can strengthen the medium-term uptrend and pave the way for an up-move to ₹265 and then to ₹280 levels over the short to medium term.
Investors with a medium-term perspective can consider buying the stock with a stop-loss at ₹220. However, if the stock decisively tumbles below ₹220 levels, it can alter the medium-term uptrend and drag the stock down to ₹200.
The long-term uptrend will remain in place as long as the stock trades above the significant long-term base level of ₹160. Investors with a long-term perspective can stay invested with a stop-loss at ₹150. Long-term supports are at ₹200 and ₹180.
I am a short-term investor, I hold Can Fin Homes stock at ₹345. Should I hold or sell? What is the prospect of the stock?
Sreekesh N
Can Fin Homes (₹467): The stock has been in an intermediate-term downtrend since encountering a key resistance at around ₹665 in late June this year. Medium-term trend is also down for the stock, while the short-term trend is sideways. The stock found support at around ₹450 in mid-November 2017 and started to move sideways in the range between ₹450 and ₹500.
Last week, the stock fell 3 per cent amidstlow volume. The short-term outlook is negatively biased. A conclusive plunge below the lower boundary of the sideways range at ₹450 can pull the stock down to ₹400 in the short term. You can consider taking partial profits off the table at this juncture and hold the stock with a stop-loss at ₹390.
The long-term perspective can remain invested with a stop-loss at ₹390. Only a strong fall below ₹400 will alter the long-term uptrend and pull the stock down to ₹375 and then to ₹350 levels in the long run. Conversely, if the stock breaks above the key resistance at ₹500, it can go higher to ₹530 and ₹550 levels.
To alter the medium as well as intermediate-term downtrend, the stock needs to emphatically rally beyond ₹565 levels. Next targets are ₹600 and ₹640.
Send your queries to techtrail@thehindu.co.in
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