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

What is your view on IPCA Labs and Balmer Lawrie?

Kunal Gupta

IPCA Laboratories (₹688.6): The pharma stock encountered significant resistance at ₹900 in March and again in July this year and has been on a medium-term downtrend. Then, the stock fell in late July, conclusively breaching its 200-day moving average of around ₹780.

Further, the stock tumbled 7.5 per cent, breaking a key long-term support at ₹730. The stock trades well below its 50- and 200-day moving averages. The ongoing medium-term downtrend can extend and find support at ₹650.

A further fall below this level will trigger its next support at ₹600 and in the ₹530-550 range, which can cushion the fall in the long term. As long as the stock trades above the key support band between ₹530 and ₹550, its long-term uptrend will not come under threat.

Investors with a long-term perspective can hold the stock and buy in declines at support levels with a stop-loss at ₹530. A decisive rally above ₹730 can push the stock northwards to ₹770 and then to ₹800. Next resistances are at ₹840 and ₹900.

Balmer Lawrie & Company (₹569.4): After breaking out of a significant long-term resistance around ₹400 in May 2014, the stock extended its intermediate-term uptrend. However, the stock met with a key resistance at ₹645 in September and reversed.

The short-term trend has been down since then. A strong fall below the key support at ₹514 will increase the selling pressure and pull the stock to ₹400.

Hence, consider taking profits off the table at this juncture and re-enter at later stage.

Please advise whether to hold or sell Essar Oil.

Vanaja G

Essar Oil (₹118.3): The stock has been on a short-term downtrend after hitting a 52-week high at ₹132 in early September.

The indicators in the daily and weekly chart showcase a bleak outlook. A fall below the immediate support at ₹105 can pull the stock down to ₹93 or even to ₹80 in the medium term. On the upside, the stock finds key resistance at ₹130. A conclusive breakthrough of ₹130 is required to strengthen the uptrend and take the stock higher to ₹140 or to ₹151 in the long term.

The inability to move beyond ₹130 or a fall below ₹105 will be a cue for exiting the stock.

Let me know the technical outlook for FDC

Navneet

FDC (₹146.5): After moving sideways in the range between ₹115 and ₹140 for the last seven months, the stock moved out of this range in late August. However, the upside was limited and the stock marked an all-time high at ₹170 in early September. Since then, the stock has been on a short-term downtrend.

A tumble below the immediate support band between ₹135 and ₹140 will pull the stock down to ₹115.

Next support is at ₹105 and ₹95. Consider taking profits off the table now. Significant resistances are at ₹155 and ₹165.

What is the medium-term outlook for Bodal Chemicals?

Thiagu

Bodal Chemicals (₹28.5): The stock is hitting lower circuit limits. Since reversing down from the resistance level of ₹75 in early August, the stock has been on a medium-term downtrend.

The outlook for the stock is bearish.

As the stock is moving from circuit to circuit, there will not be any opportunity to trade in it. Consider exiting the stock as early as possible.

Send your queries to techtrail@thehindu.co.in

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