Picture is bright for Asian Paints

The stock gained almost 7 per cent last week, breaching a key resistance level

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

What is the long-term outlook for Asian Paints and Pidilite Industries?

Sudhin

Asian Paints (₹1,214.5): The stock of Asian Paints jumped almost 4 per cent with good volume on Friday, breaching a key medium-term resistance at ₹1,170 levels. The rally has taken the stock's weekly gains to almost 7 per cent.

The stock is in an uptrend across all time-frames — long, medium and short term. Since taking support at ₹850 in December 2016, the stock has been in an intermediate-term uptrend. After four months of sideways movement, the stock resumed its uptrend last week. It trades well above its 21- and 50-day moving averages. However, it now tests a key resistance band between ₹1,200 and ₹1,230.

Strong break above this barrier will push the stock into the uncharted area, so that it can touch higher levels. The stock can trend upwards to ₹1,300 levels in the short-to-medium term. Envisaging a move beyond ₹1,300 levels needs to be reviewed after that.

Investors with a long-term perspective can continue to hold the stock with a stop-loss at ₹950 levels. Make use of declines to accumulate the stock.

Significant supports to note are placed at ₹1,170 and ₹1,100. Strong fall below ₹1,100 can find support at ₹1,050 levels.

Pidilite Industries (₹843.1): The stock of Pidilite Industries is also in an uptrend across all time-frames — long, medium and short term. Last week, the stock climbed 1.8 per cent, witnessing bullish momentum. It has recorded a new high of ₹849 on Friday.

The stock trades well above its 21- and 50-day moving averages. Nevertheless, the stock can experience selling pressure at higher levels and test resistance at ₹850 levels.

The weekly indicators and oscillators are displaying signs of weakness. A downward reversal from the key resistance band between ₹830 and ₹850 can pull the stock down to ₹800 and ₹780 levels.

The stock has been in an intermediate-term uptrend since taking support at ₹578 in December 2016. This uptrend will remain in place as long as the stock trades above ₹675 levels.

Investors with a long-term view can remain invested with a stop-loss at ₹650 levels. Key supports to note below ₹780 are at ₹750 and ₹700 levels

Send your queries to techtrail@thehindu.co.in

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