Here are answers to readers’ queries on the performance of their stock holdings.
What are the medium and long-term supports and resistances for the stock of Indian Oil Corporation?
Samar Kaushik
Indian Oil Corporation (₹174.5): The long-term trend has been up for the stock of Indian Oil Corporation (IOC) since taking support at around ₹50 (adjusted) in 2013. This uptrend will remain in place as long as the stock trades above ₹140. Investors with a long-term perspective can stay invested with a stop-loss at ₹130.
However, after recording a new high at ₹231 in August 2017, the stock changed direction and has been on a medium-term downtrend. While trending down, the stock breached key supports at ₹200 and ₹184. Even the short-term trend is down for the stock. But there is a key support in the ₹160-165 band, which can provide cushion in the short to medium term.
If the stock plunges below this base, it can decline to ₹150 and ₹140 levels. Investors with a long-term horizon can make use of such dips to buy the stock with the stop-loss mentioned earlier. A decisive rally above the immediate resistances at ₹184 and ₹190 is needed to alter the short-term downtrend and take the stock up to ₹200 and ₹205.
An upward breakthrough of the significant resistance at ₹205 is needed to change the medium-term downtrend and take it northwards to ₹220 and ₹230 levels in the long run.
What are the short-to-medium term prospects for HEG & Graphite India. Can these shares be purchased at current rates?
Wasudeo Pat
HEG (₹2,942.6): The stock of HEG has been a multi-bagger in the last one year. However, after recording a new high at ₹3,514 in late March this year, the stock began to decline and witnessed selling pressure.
Since this January, the stock has been in a sideways movement, broadly in the ₹2,200-₹3,200 range. A downward break of the immediate support level of ₹2,500 can pull the stock down to ₹2,200. Further declines below the lower boundary can mitigate the uptrend and drag the stock down to ₹2,000 and then to ₹1,600 levels. Take a cautious approach and desist taking positions at this juncture.
Graphite India (₹720.4): This stock has also been a multi-bagger over past year. After a new high at ₹908 in early January this year, the stock began to trend downwards. But a support at ₹600 provided base in February. Then, the stock began to remain range-bound between ₹600 and ₹800.
A strong rally above 800 in required to take the stock higher to ₹860 and ₹900 levels. However, if it tumbles below ₹600, it will bring back bearish momentum and pull the share down to ₹550 and ₹450 levels.
Send your queries to techtrail@thehindu.co.in
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