Technical Analysis

Just Dial: Take a call later

Yoganand D | Updated on January 20, 2018 Published on March 27, 2016

Breach of the key resistance band can take the stock up to ₹1,300 in the long run



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

Please give your long-term technical outlook on Just Dial and Jet Airways.

N K Raveekumaar

Just Dial (₹739.8): Since registering a new high at ₹1,894 in August 2014, the stock of Just Dial has been on a long-term downtrend. However, it recorded an all-time low at ₹377 in early February 2016 and subsequently changed direction, triggered by positive divergence in daily relative strength index.

Moreover, there has been an increase in daily volumes since February. The short-term trend has been up. In the truncated past week, the stock surged more than 15 per cent with good volumes, conclusively breaching its 21- and 50-day moving averages.

Nevertheless, the stock now tests a significant resistance at ₹750 which it failed to breach in early March. With the daily indicators and oscillators showing signs of bullishness and the stock hovering well above its moving averages, the possibility of breaching the resistance remains high.

Such a break can take the stock northwards to ₹900 initially, where the 200-day moving average is poised, and then to the next key resistance in the band between ₹1,000 and ₹1,070.

An emphatic break out of this resistance band can take the stock up to ₹1,300 in the long run. To alter the stock’s long-term downtrend, it needs to decisively rally above ₹1,300. Subsequent resistances are at ₹1,400 and ₹1,500.

Investors with a long-term perspective can consider buying the stock with a stop-loss at ₹590. Key supports are placed at ₹640 and ₹600. Only a strong fall below ₹600 can pull the stock down to ₹540 or even to ₹440 in the medium term.

Jet Airways India (₹553.4): Following an accelerated up move in November and December 2015, the stock encountered a key resistance at ₹796 in early January 2016. It subsequently reversed direction and began to decline. Since then, it has been on a short-term downtrend. But the stock found support in the zone between ₹500 and ₹520 this February.

A 50 per cent fibonacci retracement level of the prior downtrend also coincides with this support zone.

Last week, the stock surged almost 6 per cent, accompanied by good volumes, taking support from this base. Investors with a medium-term perspective can consider buying the stock at the current levels, while maintaining a stop-loss at ₹475.

Strong close above ₹610 can take the stock higher to ₹700 and then to ₹800 in the medium to long term. Having said that, a conclusive fall below the immediate support band can mitigate the stock’s intermediate-term uptrend and drag it down to ₹450 or even to ₹400 in the medium term.

What are the support levels for Tide Water Oil and Astra Microwave Products. Can one can invest or wait?

Manoj

Tide Water Oil India (₹6,561): After a strong surge in December 2015, the stock met with a key resistance at ₹8,317 (stock-split adjusted) and began to decline.

Since then, it has been very volatile. After hitting a low at ₹4,937 in early February, the stock rallied and encountered a resistance at ₹7,500 in March.

Immediate support is in the band between ₹6,000 and ₹6,080. Break below this level can pull the stock down to ₹5,500 or even to ₹5,000 in the medium term.

Next significant medium-term supports are at ₹4,500 and ₹4,000. Desist buying the stock at current levels. Resistances above ₹7,000 are at ₹7,500 and ₹8,000.

Astra Microwave Products (₹108.5): Since July 2014, the stock has been on a sideway consolidation move in the wide range between ₹100 and ₹155. After testing the upper boundary of ₹155 in early December 2015, the stock started to decline.

It now tests the significant support at ₹100. A decisive break through of this support will have bearish implications and pull the stock down to ₹80 and then to ₹60 in the medium term.

Avoid the stock at this juncture. However, an upward reversal can take the stock higher to ₹126 and then to ₹140 levels.

Send your queries to techtrail@thehindu.co.in

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