Here are answers to readers’ queries on the performance of their stock holdings.
What is outlook for Crisil and Asian Paints?
G Somashekhar, Kumar S
Crisil (₹2042.7): Since taking support at around ₹184 in late 2008, the stock of Crisil has been on a long-term uptrend. This was intensified after the stock broke through a key resistance at ₹1,250 in April 2014 and went on to record a new high.
However, the stock has a significant resistance in the band between ₹2,100 and ₹2,150. Testing this resistance zone, the stock fell 2.5 per cent on Friday.
This fall can extend in the short-term and the stock can test its immediate support at ₹1,950 levels. Further fall can find base at the lower boundary of the medium-term sideways consolidation phase between ₹1,800 and ₹2,150 levels.
Investors holding the stock can take partial profits off the table at the current juncture.
A decisive fall below ₹1,800 levels will pave the way for a decline to ₹1,700 or ₹1,600 in the medium term.
The long-term uptrend will be in place as long as the stock trades above ₹1,250 levels.
Asian Paints (₹797): The stock is in an uptrend across all-time frames. However, recording a new high at ₹922 in late January this year, Asian Paints began to fall, forming a bearish engulfing pattern.
Currently, the stock tests a key support as well as short-term trend-deciding level at ₹800.
An emphatic downward breakthrough of this support will strengthen the downtrend and pull the stock down to the level of ₹726 and then to ₹700 in the short term.
Next key supports are pegged at ₹670 and ₹600. A strong fall below ₹600 will mar the intermediate-term uptrend and drag the stock down to ₹500.
Investors can consider taking partial profits in this stock also. Resistances to note are at ₹850 and ₹920 levels.
I bought shares of PTC India Financial Services at ₹68. Please advice on support and resistance.
Rajendran N
PTC India Financial Services (₹59.4): Last month, the stock marked a new high at ₹73 and subsequently changed direction. It is in a short-term downtrend, which is now testing a significant support level at ₹58.
A strong breakthrough of this support will reinforce the downtrend and pull the stock down to ₹52 and then to ₹46 in the short term.
On such a fall, consider exiting the stock and re-entering at lower levels. Next important supports are at ₹43 and ₹40. Conversely, reversal from the current support can encounter resistance at ₹65 and ₹70 levels.
I am holding Unichem Laboratories. What is its medium to long-term outlook?
Anil
Unichem Laboratories (₹205.6): The stock failed to break through a significant long-term resistance (its December 2010 peak) at ₹268 in mid-December 2014 and reversed direction. Since then, it has been on a medium-term downtrend. It decisively breached a key support at ₹215 by tumbling 7 per cent last week.
The stock trades well below its 50- and 200-day moving averages. Now, it can find support at ₹195 which is the stock’s next key base level. An inability to hold at this level will pave the way for a further fall to ₹180 in the coming weeks. As long as the stock trades above ₹180, its long-term uptrend will remain in place and an upward reversal is possible. Significant resistances are placed at ₹215, ₹230 and ₹250 levels.
Can I buy IL&FS Transportation at the current price? What are its medium and long-term prospects?
Rajeev
IL&FS Transportation Networks (₹207.3): The stock’s intermediate-term downtrend that started from the July 2014 peak of ₹257 is still in place.
Following a corrective rally, the stock retraced 61.8 per cent Fibonacci retracement level and met with a key resistance around ₹220 in recent times.
The stock is losing momentum and appears to be resuming its downtrend.
A strong fall below the immediate support at ₹200 can pull the stock down to ₹185 and then to ₹170 levels.
Investor can consider buying at these support levels or breaking out at ₹220. This can alter the trend and take the stock northwards to ₹235 and ₹260 levels in the medium term. Significant supports are at ₹155 and ₹140 levels.
Send your queries to techtrail@thehindu.co.in
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