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Here are answers to readers’ queries on the performance of their stock holdings.
I bought shares of UltraTech Cement at ₹3,900. What is the outlook?
TVS Prakash Rao UltraTech Cement (₹3,982.1): Since taking support at ₹3,263 in late October, the stock of UltraTech Cement has been on a medium-term uptrend.
However, it encountered a key resistance at ₹4,100 in late November and continues to test this level.
An emphatic break above this resistance is required to strengthen the uptrend and take the stock northwards to ₹4,300 and ₹4,500 in the short to medium term. But failure to move beyond the current medium-term resistance can keep the stock consolidating sideways in the ₹3,700-₹4,100 range for a while.
A strong plunge below ₹3,700 will bring back selling pressure and drag the stock down to ₹3,500 and ₹3,300 in the medium term.
Consider exiting the stock if it fails to move beyond ₹4,100 this week and re-enter at lower levels later.
The stock has been on a wide sideways consolidation phase between ₹3,600 and ₹4,500 since early 2017.
The key resistance at ₹4,500 has capped the upside for the stock in January 2018 and in August.
A strong break above this level is needed to strengthen the bullish momentum and take the stock higher to ₹4,700 and ₹5,000 in the long run.
Investors with a long-term horizon can stay invested with a stop-loss at ₹3,400 levels.
I have shares of 8K Miles Software Services. What are the major support and resistance levels for the stock?
Pradeep Kabra
8K Miles Software Services (₹155.6): Ever since recording a new high at ₹1,024, the stock has been on a long-term downtrend, forming lower peaks and troughs.
From July this year, the stock began to move circuit to circuit, without providing traders an opportunity to buy or sell it.
In early November, the stock registered a 52-week low at ₹55 and reversed direction.
Since then, it has been on a short-term uptrend. Key supports are at ₹125 and ₹100.
A decisive fall below ₹100 can drag the stock down to ₹60 in the medium term. On the upside, major resistances are placed at ₹200, ₹250 and ₹300 levels. Investors should desist taking positions in these kind of circuit to circuit hitting stocks.
Send your queries to techtrail@thehindu.co.in
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