India Nippon Electricals in a downtrend

A breakthrough of ₹550 can take the stock up to ₹650 over the long term

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

I bought India Nippon Electricals and Apcotex Industries for an average cost of ₹388 and ₹430 respectively. What is the outlook for these two stocks?

Rabinder S

India Nippon Electricals (₹443): The stock of India Nippon Electricals has been in a long-term downtrend since marking an all-time high at ₹712 in November 2017. However, it found support at ₹370 this February and began to trend up. The stock now tests a significant resistance at ₹450, which is its 200-day moving average. An emphatic break above this barrier can take the stock up to ₹500 and ₹550 in the medium term.

A strong breakthrough of ₹550 is required to alter the downtrend and take the stock up to ₹600 and ₹650 over the long term. You can stay invested with a stop-loss at ₹390. A decisive fall below the key base level of ₹400 will alter the corrective uptrend and pull the stock down to ₹370 levels.

 

 

A further slump below ₹370 will reinforce the long-term downtrend and drag the stock down to ₹350 and ₹320 over the long term. Investors with a long-term perspective can remain invested with a stop-loss at ₹370..

Apcotex Industries (₹543.4): Following a long-term uptrend, the stock of Apcotex Industries registered a new high at ₹668 in September 2018. Thereafter, the stock witnessed a corrective medium-term downtrend and found support at around ₹430 in early February this year. Since then, it has been on a budding short-term uptrend. Reinforcing the bullish momentum, the stock advanced 5 per cent with good volume on Friday. But the stock faces a key resistance ahead in the ₹560-570 band.

A strong break above this band is needed to strengthen the uptrend and take the stock up to ₹600 and ₹650 in the medium term. You can hold the stock with a stop-loss at ₹500 and consider booking profit at around ₹650. Failure to move beyond ₹570 can keep the stock in a sideways movement between ₹500 and ₹570 for a while.

On the downside, a strong break below the key support at ₹475 will alter the short-term uptrend and drag the stock down ₹450 and ₹430 levels. Investors with a long-term horizon can stay invested with a stop-loss at ₹425. A strong plunge below the key long-term support level of ₹430 can drag the stock down to ₹400 and then to ₹350 over the medium to long term.

What are the long-term prospects for Himadri Speciality Chemical?

Sudhakar Reddy

Himadri Speciality Chemical (₹115.8): Since recording a new high at ₹197 in January 2018, the stock has been in an intermediate-term downtrend. Key support in the ₹95-105 band provided base for the stock in February 2019. Consider buying in declines with a stop-loss at ₹90.

A strong break above ₹125 will strengthen the short-term uptrend and take the stock up to ₹130 and ₹140 levels. An emphatic break above the long-term resistance level of ₹150 is required to alter the downtrend and take the stock higher to ₹170 and ₹190 over the long term. Supports are at ₹110 and ₹95.

Send your queries to techtrail@thehindu.co.in

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