Your Stock Portfolio. Cairn India is worth exploring

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

What is your view on Cairn India and Tide Water Oil? When is the right time to invest in these stocks for long term?

Manoj

Cairn India (₹233.4): Since the June 2014 peak of ₹385, the stock has been in an intermediate-term downtrend. In December, the stock failed to find support at its long-term base level of ₹250 and fell below this level.

It has been in a short-term sideways movement in the ₹230- ₹250 band since then. There has been an increase in volume over the past four weeks. Indicators in the weekly chart are recovering from the oversold levels. However, there are no clear signs of trend reversal.

A decisive fall below ₹230 can reinforce bearishness and drag the stock down to ₹210 or ₹200 in the medium term. You can consider buying at these levels. You can also invest with a stop-loss at ₹200 if the stock reverses higher from the current support level at ₹230.

A strong break out of the significant long-term resistance at ₹250 can pave way for a rally to ₹270. Long-term target for the stock is ₹300.

Tide Water Oil India (₹18,432.2): The stock has been in a long-term uptrend from the September 2013 trough around ₹6,700. It conclusively broke its long-term resistance level at ₹10,000 in June 2014 and continued its upward journey recording new highs.

Nevertheless, after marking a new high at ₹19,680 in early December 2014, the stock has been moving sideways in the range between ₹17,500 and ₹19,500, with negative bias.

Investors sitting on profits can consider taking it off the table at this juncture. Fresh investment is not advisable now.

A tumble below the lower boundary will have bearish implications and pull the stock down to ₹16,000 and then to ₹15,000 in the medium-term.

Next significant supports are pegged at around ₹12,000 and ₹10,000. The long-term uptrend will remain in place as long as the stock trades above ₹12,000 levels. Strong rally above ₹19,000 can encounter resistance at ₹20,000 in the short term.

Please give me the short-term view on Syndicate Bank.

Anil Dixit

Syndicate Bank (₹117.2): Last week, the stock plummeted 7 per cent intensifying its downtrend that has been in place from the July 2014 peak of ₹179 levels. Short-term trend is also down. Currently, the stock is testing a key support at ₹116.

An emphatic fall below this level will strengthen the downtrend and pull the stock down to ₹107 and then to ₹100 in the short term.

Key resistances to note are at ₹125, ₹131 and ₹140.

Can I purchase MCX at the current price? What are the medium and long-term prospects for this stock?

Rajeev

Multi Commodity Exchange of India (₹881.6): The stock of MCX bottomed out in August 2013 from the all-time low of ₹238 levels. Since then, the stock has been trending northwards. Medium-term trend is up.

But, the short-term trend is sideways in the band between ₹830 and ₹910. Await a clear break out on either direction for a clear view and buying opportunity. A fall below ₹830 can take the stock lower to the next support at ₹750.

The stock can be bought at this level with a stop-loss at ₹700. Failure to hold above ₹700 can pull the stock down to ₹600 in the long term.

On the upside, a conclusive rally above the upper boundary will also be a buying opportunity. The stock can move higher to ₹950 and then to ₹1,000 in the short term.

Significant long-term resistances above ₹1000 are placed at ₹1,120 and ₹1,250 levels.

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