UltraTech Cement is broadly range-bound

A break of ₹4,550 is needed to strengthen the uptrend and push the stock up to ₹4,700

 

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

I hold shares of UltraTech Cement bought at ₹4,218 per share and UCO Bank at ₹39. What will be their outlook for the next 12 months?

J Parimelazhagan

UltraTech Cement (₹4,063.1): The stock of UltraTech Cement is in a long-term uptrend. However, it encountered a key resistance in the ₹4,500-4,550 band in May 2017. Since then, the stock has been in an intermediate-term sideways consolidation phase in the broad range between ₹3,800 and ₹4,500. Whenever the stock reaches the lower boundary, it takes support in the ₹3800-3,850 range and reverses higher; it took support in early April this year and moved up. As long as the stock trades above this significant support range, it has the potential to resume its long-term uptrend.

You can consider averaging the stock with a stop-loss at ₹3,750. A strong breach of the immediate resistance at ₹4,200 can take it up to ₹4,400 and then to ₹4,550 in the medium term.

An emphatic upward breakthrough of ₹4,550 is required to strengthen the long-term uptrend and push the stock higher to ₹4,700 levels in the long run.

But you can consider taking partial profits if the stock faces difficulty in surpassing the ₹4,550 levels. Conversely, if the stock plunges below the vital long-term support level of ₹3,800, it can decline to ₹3,600 or even to ₹3,400 levels. In that case, exit the stock and re-enter at lower levels.

UCO Bank (₹19.1): The stock is in a downtrend across all-time frames. In February, it conclusively breached a long-term key support at ₹29 and continued to decline without any corrective up-move. It is currently at a multi-year low. However, it is likely to take support at current levels. The indicators feature in the oversold territory, implying that a corrective up-move is possible. This can take the stock higher to ₹23 and ₹27.

To alter the short-term downtrend, the stock needs to break above ₹29. In that case, it can extend the up-move to ₹33 and ₹36. If it continues the downtrend, it can find support at ₹14.3. Breach of this level can drag the stock down to ₹10 in the long run. If you are a high-risk investor, average at current levels and exit in rallies with a stop-loss at ₹18.

Please let me know the short, medium, and long-term targets of SQS India BFSI.

Balakrishnan MR

SQS India BFSI (₹577.8): The stock of SQS India BFSI has been on a long-term downtrend since encountering a key resistance at ₹1,290 in January 2016. Nevertheless, it found support at around ₹400 in August 2017 and began moving sideways with an upward bias.

Last week, the stock jumped 12 per cent, accompanied with above-average volume, and breached a key long-term resistance at ₹550.

But it faces crucial resistance now at ₹600. With the bullish momentum, the stock has the potential to break above ₹600 and reach the short-term target of ₹650 levels.

Medium-term targets are at ₹700 and ₹750 levels. In the long term, the stock can trend upwards to ₹850 levels. Investors with a long-term perspective can stay invested with a stop-loss at ₹440 levels. Short-term supports are at the levels of ₹550, ₹500 and ₹450.

Send your queries to techtrail@thehindu.co.in

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





Related

MORE FROM BUSINESSLINE


 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor