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What is the short-, medium- and long term prospect of Symphony stock? What is the best entry point for the long term?
Shirjeel Ahmed Khan
Symphony (₹836.3): The stock has been on a long-term uptrend since taking support at ₹180 in June 2012. The medium- as well as short-term trends are also up. Since forming a trough at ₹390 in January 2014, the stock has been on an accelerated up move with minor corrective declines. In this short span of time, the stock has more than doubled. Its daily as well as weekly indicators are featuring in the bullish zone, implying the possibility of a trend reversal in future. Moreover, the daily indicators are displaying a negative divergence, backing this trend reversal. The upside could be limited from hereon. Hence, buying this stock at current levels is not advisable.
I have bought Dena Bank at ₹66. Please let me know the prospects.
Vijay
Dena Bank (₹62.9): The stock is currently testing a key long-term resistance at ₹65, from which it had reversed downwards in November 2013 and January 2014. You have purchased the stock at this key resistance level. You can consider holding and also accumulating the stock in declines with a stop-loss at ₹50. A strong break out of ₹65 can take Dena Bank northwards to ₹70 or ₹73 in the short- to medium-term. Subsequent key resistances are pegged at ₹80, ₹85 and ₹95. Significant supports for the stock are at ₹55 and ₹50. However, a strong fall below ₹50 will mar the stock’s bullish momentum and pull it down to ₹45 or ₹41 in the medium-term.
Please provide the medium-term outlook for Infotech Enterprises.
Prasad
Infotech Enterprises (₹318): After encountering resistance at ₹387 in January and again in February 2014, the stock formed a double top pattern and started to decline. Since then, the stock has been on a medium-term downtrend. Key resistance band between ₹335 and ₹340 is mounting pressure on the stock and it has been unable to surpass this level in the last one month. An emphatic break-through of this band will pave way for a rally to ₹387 in the ensuing months. On the downside, a plunge below the stock's immediate support at ₹300 can drag it down to ₹265 and then to ₹240 levels in the medium term. Hence, investors can consider exiting the stock in this scenario and re-entering at lower levels. Significant long-term support is placed at ₹200. A fall below this level is unlikely in the medium-term.
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