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Here are answers to readers’ queries on the performance of their stock holdings.
What is the outlook for Ashok Leyland purchased at ₹73 levels?
Harish G Davey
Ashok Leyland (₹149.4): The stock of Ashok Leyland took support at around ₹80 in April 2017 and resumed its long-term uptrend that has been in place since early 2014.
While trending up, the stock emphatically breached a key resistance at ₹110 in September 2017, which later turned into a key support.
The stock continued its uptrend after reversing higher from the significant long-term support at ₹110. The medium-term outlook is bullish for the stock. It trades well above its 50 and 200-day moving averages. You can stay invested with a stop-loss at ₹105. As long as the stock trades above ₹110, the medium-term trend will remain up.
On Friday, the stock gained 3 per cent with extraordinary volumes, strengthening the uptrend. However, it now tests a key resistance at ₹150. A strong up-move beyond ₹150 can take the stock higher to ₹170 or ₹180 levels in the long run.
Consider taking partial profits at higher levels. Key supports are placed at ₹130 and ₹110. However, a conclusive plunge below ₹110 will mar the medium-term uptrend and drag the stock down to the subsequent supports at ₹95 and ₹80 levels.
Should I sell or buy more of the stocks of Lambodhara Textile bought at ₹210 and Fortis Healthcare bought at ₹140?
G Sree Devi
Lambodhara Textile (₹72.3): After witnessing a remarkable uptrend in 2015, the stock of Lambodhara Textile marked an all-time high at ₹560 in August that year and reversed direction. Since then, it has been on a long-term downtrend. However, the stock found support at around ₹60 in November 2016 and has since been in a sideways consolidation phase in the wide range between ₹60 and ₹85. Key resistance at ₹85 limited the uptrend this February and the stock remains range-bound. An emphatic breakthrough of the vital resistance is required to help it gather strength and take it up to ₹100 and ₹120 in the medium to long term.
You can consider averaging above ₹85 with a stop-loss at ₹75 and exit the stock in rallies. On the other hand, the stock has short-term supports at ₹65 and ₹60. A decisive fall below ₹60 can pull the stock down to ₹50.
Fortis Healthcare (₹151.9): In November 2017, the stock of Fortis Healthcare found a long-term support at around ₹120 and has been in a medium-term sideways movement in the range between ₹120 and ₹165.
The stock tested the lower boundary in late March and bounced up. It now tests a key hurdle at ₹150. A strong up-move from this level can encounter a significant long-term resistance at ₹165 in the short term.
A conclusive breach of this level will alter the intermediate-term downtrend and take the stock up to ₹180 and ₹200 levels. If there is rally beyond ₹200, the stock can witness an up-move to ₹220 and ₹230 levels in the long run. You can average the stock with a stop-loss at ₹130. Conversely, if the stock plunges below the crucial support at ₹120, it will strengthen the downtrend and drag the stock down to ₹100 in the medium term.
Send your queries to techtrail@thehindu.co.in
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