Aban Offshore in the limelight

A break above ₹75 will strengthen the uptrend and take the stock up to ₹100

 

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

I have shares of Aban Offshore and Quick Heal Technologies. What is the outlook for these stocks?

Sivakumar

Aban Offshore (₹74.8): The stock of Aban Offshore was in the limelight last week as it skyrocketed 30 per cent, accompanied by extraordinary volumes. Since recording a 52-week low at ₹47.9 in mid-February this year, the stock has been in a short-term uptrend. However, the long as well as medium-term trends are still down.

After entering the deep oversold territory in mid-February, the stock changed direction. While trending up, it decisively surpassed the 21- and 50-day moving averages in the previous week and hovers well above them.

That said, the stock now tests a key resistance at ₹75. A conclusive break above this barrier will strengthen the short-term uptrend and take the stock up to ₹88 and ₹100 in the coming weeks.

But to alter the medium-term downtrend, the stock needs to decisively break the ₹100 level. Such a break will pave way for an up-move to ₹115 and ₹130 over the medium term. Significant resistances are at ₹160 and ₹190 levels.

Investors with a long-term perspective can buy the stock in declines and remain invested with a stop-loss at ₹57. On the downside, a strong fall below the key support of ₹53 will reinforce the long-term downtrend and drag the stock down to ₹47 in the medium term. Investors with a medium-term perspective can also buy with a stop-loss at ₹64.

Quick Heal Technologies (₹230.7): Taking support from the long-term base level of ₹172, the stock of Quick Heal Technologies reversed direction and began to trend up in mid-February this year. Since then, the stock has been in a short-term uptrend. But it currently tests a key medium-term resistance at ₹230; the 200-day moving average is also poised around this barrier.

A conclusive rally above this level will strengthen the up-move and take the stock higher to ₹260 and ₹290 over the medium term. To alter the long-term downtrend that has been in place from the January 2018 high of ₹403, the stock needs to decisively break above the vital resistance level of ₹290. Such a break-out can take the stock up to the long-term price targets of ₹320 and ₹350 levels.

Conversely, a downward reversal from the current levels will keep the stock in a sideways consolidation mode in the wide range between ₹172 and ₹230 for a while. Immediate supports are at ₹205 and ₹185 levels. Investors with a long-term perspective can stay invested with a stop-loss at the level of ₹170.

 

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