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

I have shares of Monte Carlo Fashions and Sun Pharmaceutical. What is the outlook for these shares?

G Somashekhar

Monte Carlo Fashions (₹484.9): The stock got listed in mid-December 2014 and has very limited price history. It is difficult to envisage a long-term trend or outlook for this stock at this moment. Key support is placed at ₹460. On the other hand, significant resistances are at ₹510, ₹540 and ₹580 levels. Strong rally above ₹510 can push the stock higher to ₹540 levels.

Sun Pharmaceutical Industries (₹923.7): The stock is in an uptrend across all time frames, short- medium- and long-term. The stock’s 8.5 per cent jump last week, accompanied by extra-ordinary volumes, strengthened this bullish momentum.

This rally has pushed the daily indicators into overbought levels. Moreover, the stock is testing a key resistance at ₹925 levels. Only a decisive rally above this level will take the stock higher to ₹950 and then to ₹1,000 in the medium term.

The inability to surpass this level will be a cue for the investors with a short-term perspective to take some profits off the table.

Investors with a medium-term horizon can stay invested with a stop-loss at ₹800 levels. On the downside, a fall below the immediate key support at ₹850 will mar the short-term uptrend and pull the stock down to ₹800. Subsequent supports below ₹800 are at ₹750 and ₹700 levels.

As long as the stock trades above the significant long-term support level of ₹650, its long-term uptrend will remain intact. Investors can hold the stock with a stop-loss at ₹640 levels.

I have shares of Engineers India bought at ₹238. What is the outlook for the company in the medium term?

Pankaj

Engineers India (₹224): Since encountering a key resistance at around ₹330 in early July 2014, the stock has been in a medium-term downtrend. In November, the stock failed to break its key resistance at ₹280 and resumed its downtrend. The short-term trend is also down for the stock. Daily volumes are decreasing over the past three months, backing the downtrend.

The stock has a significant long-term support in the band between ₹200 and ₹210. This base zone can provide support for the stock in the medium term. An upward reversal from this zone is possible. Therefore, you can accumulate the stock at lower levels with a stop-loss at ₹190.

Strong breakthrough of immediate resistance at ₹250 can push the stock northwards to ₹280 levels. To alter the medium-term downtrend, the stock needs to emphatically rally above ₹280. Next resistances are at ₹300 and ₹330 levels. The stock can target these levels in the long term.

I have bought shares of Nilkamal at ₹394. Please give the technical outlook for the near/medium term.

Kandaswamy Arumugam

Nilkamal (₹443.7): After registering a new high at ₹505 in early December 2014, the stock started to move sideways in a narrow band between ₹440 and ₹505.

Though the stock’s long-term uptrend is still in place, its medium-term uptrend is losing momentum.

A fall below ₹440 can drag the stock down to ₹400 in the short- to medium-term. Hence, you can consider booking your profit at this juncture. Further fall below ₹400 will alter the medium-term uptrend and pull the stock down to ₹350 or even to ₹300 levels. Immediate resistances are at ₹475 and ₹505.

What is the medium- and long-term outlook for Sudar Industries?

P Sarala

Sudar Industries (₹34.8): The stock’s medium-term uptrend that started from the key support at ₹18 in May 2014 came to a halt after encountering a resistance at around ₹50 in late November. Since then, the stock has been in a short-term downtrend. The medium-term uptrend is also under threat.

A strong tumble below the current support level of ₹34 will mitigate the uptrend and pull the stock down to ₹28 in the medium-term. A further fall can drag the stock down to ₹18 in the long term. Exit the stock. Key resistances are at ₹41, ₹46 and ₹50.

Send your queries to techtrail@thehindu.co.in

Related Topics
comment COMMENT NOW