Here are answers to readers’ queries on the performance of their stock holdings.
I brought ICICI Bank at ₹355 with a short-term view. Should I hold it or sell?
Shyam Somani
ICICI Bank (₹361): Following a strong fall in the first half of 2018, the stock of ICICI Bank found support at ₹260 in late July 2018. Taking support from the significant long-term support level of ₹260, the stock resumed its long-term uptrend that has been in place since the early 2016 low recorded at ₹164.
From July, the stock has been on a medium-term uptrend. Moreover, the short-term trend is also up for the stock. But it encountered a key resistance at around ₹365 in early November and continues to test this barrier with a positive bias. The stock trades well above its 21- and 50-day moving averages. The indicators in the daily chart show mixed signs, while the weekly indicators hover in the positive territory, backing the trend.
A conclusive break above the current resistance level of ₹365 will strengthen the uptrend and take the stock northwards to ₹380 and ₹400 in the medium term. On the other hand, a decisive fall below the key support at ₹335 will mar the short-term uptrend and drag the stock down to ₹320 and then to ₹305 in the medium term. A fall below the key support at ₹305 will alter the medium-term uptrend and pull the stock down to ₹280 and then to ₹260 levels.
I bought shares of Dilip Buildcon at ₹797. What are the long-term prospects?
UN Sathish Babu
Dilip Buildcon (₹420): The stock has been on an intermediate-term downtrend since the May high of ₹1,248. Within this downtrend, the stock has been range-bound between ₹380 and ₹500 since late October. A strong break above ₹500 can take the stock up to ₹600 and ₹650 in the medium term. But an emphatic break above ₹800 is needed to alter the downtrend and take it up to ₹900 and ₹1,000. A fall below the key base level of ₹400 can drag the stock down to ₹350 and ₹300. Consider averaging on a strong rally above ₹500 with a stop-loss at ₹400.
Send your queries to techtrail@thehindu.co.in
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.