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Aurobindo Pharma on
a healthy trend
Here are answers to readers’ queries on the performance of their stock holdings.
I bought Arobindo Pharma bought at ₹1,125. Should I hold?
BP Kohli
Aurobindo Pharma (₹1,431.8): The stock of Aurobindo Pharma is on an uptrend across all-time frames — long, medium and short-term. Last week, the stock jumped 5.4 per cent breaching a key resistance at 1,400 levels and registered a new high at 1,461.
Having said that, the long-term picture for the stock is diminishing as the indicators and oscillators in the weekly and monthly charts are showing signs of weakness. Moreover, the stock has given 27 per cent returns from your purchase price.
Therefore, you can start harvesting these gains and consider taking profits off the table on further rallies. A fall below the current support level of ₹1,400 can pull the stock down to ₹1,300 and then to ₹1,250 levels in the short term.
Further fall below ₹1,250 can alter the stock’s medium-term uptrend and drag it down to ₹1,150 or even to ₹1,000 in the coming months. Continuation of the uptrend can move the stock price to ₹1,500 in the same time period.
I had purchased Monte Carlo Fashions at ₹630. Kindly advise on the outlook of the company; should I hold or exit at the present levels?
G Somashekhar
Monte Carlo Fashions (₹539): Since its initial public offer in December 2014, the stock of Monte Carlo Fashions has been on a sideways consolidation phase in the wide band between ₹460 and ₹600 levels.
After taking support at the lower boundary of ₹460 this March, the stock started to move northwards. Last week, the stock surged 5 per cent with good volumes, witnessing buying interest.
The stock can now extend its up-move and test the upper boundary only if its holds above its immediate support level of ₹510. Having said that, a fall below the immediate base level of ₹510 can pull the stock down to ₹480 and then to ₹460.
You can consider these falls to average and hold the stock with a stop-loss at ₹450 levels. Strong rally above ₹600 will push the stock northwards to ₹635 and then to ₹650 in the medium to long term.
Send your queries to techtrail@thehindu.co.in
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