Here are some answers to readers’ queries on the performance of their stock holdings.

Please provide the medium term forecast for Mcleod Russel.

Prasad

Mcleod Russel India (₹272.1): The Modi fever failed to cheer the stock of Mcleod Russel India. Since August 2013, the stock has been on a sideways consolidation phase in a wide band between ₹250 and ₹310. After encountering resistance at ₹310 in early April 2014, the stock started to fall.

But, the stock is now testing its 50 and 200-day moving average and is trading at a crucial short-term trend deciding level. In case of a strong fall below ₹267, the stock can decline to ₹250 in the forthcoming weeks.

Further decline below ₹250 will strengthen the stock's intermediate-term downtrend that has been in place from February 2013 peak of ₹386. In that scenario, the stock can decline to ₹218 or even to ₹200 in the medium to long-term. Investors can exit the stock on a strong fall below ₹250 and re-enter at lower levels.

The stock has a significant long-term support in the band between ₹180 and ₹200 which can act as a strong foothold in the long run. To overturn the intermediate-term downtrend, the stock needs to move above ₹310 while the immediate hurdle is at ₹290. Strong break-out of ₹310 can be a buying opportunity and will pave the way for an up-move to ₹340.

I purchased PNB Gilts at Rs.18.60. What is the future of the stock?

Hitesh Dumaswala

PNB Gilts (₹19.5): After moving sideways in a narrow band between ₹16 and ₹18, PNB Gilts in late April moved to another range between ₹18 and ₹22. The stock is very volatile and range bound for the long-term. Moreover, making good returns in non-trending stocks like this is not possible.

Hence, it is better to exit this stock. Look for trending stocks which moves in a direction steadily. An emphatic breakthrough of ₹22 can push the stock northwards to ₹26 or even to ₹29 in the long-term. But, a fall below ₹16 will drag the stock down to ₹14 or ₹12.

Please let me know the technical prospects of eClrex Services.

Vageesh

eClerx Services (₹1,214): eClerx Services (eClerx) has been in a long-term uptrend since taking support at ₹600 in May 2013. However, since February this year, the stock started to decline and has been moving sideways between ₹1,050 and ₹1,300. A key resistance band between ₹1,280 and ₹1,300 is preventing the stock from making a rally to new highs. Strong breach of this hurdle will take the stock to ₹1,350 and then to ₹1400 in the medium-term. Important supports are placed at ₹1,130 and then at ₹1,050. A conclusive fall below ₹1,050 will alter the stock's medium-term trend downwards and pull it down to ₹900 or even to ₹800 in the medium to intermediate-term. In that case, investors can exit the stock and buy at lower levels. Next important support below ₹800 is at ₹700.

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