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Strong brew from Tata Global
Here are answers to readers’ queries on the performance of their stock holdings.
What is the long -term outlook for SJVN and Tata Global?
S Vivek
SJVN (₹23.1): The stock's medium-term uptrend came to an end after encountering key long-term resistance in the band between ₹27.5 and ₹28 in May and June this year. Since then, the stock has been on a medium-term downtrend.
However, the stock is finding immediate support at its 200-day moving average of around ₹22.5, which could be temporary. A fall below this level can pave way for a decline to ₹20 in the medium term. Next support is pegged at ₹18.5. Significant resistance levels to note are at ₹25, ₹26 and then ₹28.
Tata Global Beverages (₹162.1): A significant support at ₹150 arrested the stock's downfall in mid-July. Thereafter, this support level, which is also the 200-day moving average, provided base for the stock in August.
The stock surged 7.4 per cent last week, breaching its immediate key resistance as well as 50-day moving average around ₹158. This rally has strengthened the stock’s short-term uptrend.
However, for further rally, the stock needs to decisively breakthrough its key long-term resistance band between ₹170 and ₹175 levels.
In such a scenario, the stock would have resumed its long-term uptrend. It can then move northwards towards ₹182 and ₹200. On the other hand, an emphatic decline below ₹150 will strengthen the bearish momentum and pull the stock down to ₹142 or ₹135 in the medium term.
The long-term uptrend will remain intact as long as the stock trades above the significant support level of ₹135.
I have purchased Tide Water Oil at ₹9,400. What are the prospects for the stock over the next year?
K Prasad
Tide Water Oil India (₹13,808.6): The stock registered a new high at ₹14,000 levels, following a strong 14 per cent gain last week. With this rally, the stock's indicators on the daily and weekly charts have reached the overbought levels, indicating a corrective decline.
Moreover, you have already made a huge profit of more than 40 per cent. Booking profits at this juncture will be advisable.
The stock could test resistance at ₹14000 and reverse down in the near future. Immediate key support is placed at ₹12,250 levels.
A fall below this level can drag the stock down to ₹10,700 and then to subsequent long-term support band between ₹9,950 and ₹10,000.
If this support band fails to hold, then the stock can decline to ₹8000-8100 levels in the next one year. Important resistance above ₹14,000 is at ₹14,500.
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