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HEG is range-bound
Here are answers to readers’ queries on the performance of their stock holdings.
What are your views on the short to medium term prospects for HEG & Graphite India. Can these shares be purchased at current rates?
Wasudeo Pat
HEG (₹3,339.6): The stock of HEG is in an uptrend across all-time frames — long, medium and short. However, after marking a new high at ₹3,695 in mid-May this year, the stock began to witness selling pressure and has been vacillating sideways. It has a significant medium-term resistance in the ₹3,500-3,700, band, which could limit its upside in the short to medium term.
The indicators and oscillators in the weekly chart show signs of weakness and a potential trend reversal is on the cards.
A strong plunge below the key medium-term support at ₹2,500 will confirm the trend reversal and pull the stock down to ₹2,000 and ₹1,600 in the medium to long term.
If the stock does not break below ₹2,500, it can keep consolidating sideways in the wide band between ₹2,500 and ₹3,700 for a while. A decisive upward break of ₹3,700 can take the stock higher to ₹4,000 or ₹4,200.
You can wait and buy the stock on a decline below ₹2,500 with a long-term stop-loss placed at ₹1,900. An immediate support is at ₹3,000.
Graphite India (₹815.6): Following a strong rally in 2017, the stock of Graphite India registered an all-time high at ₹908 in early January this year. Subsequently, it changed direction and has been in a sideways consolidation phase in the wide range between ₹600 and ₹900.
In late May, the stock tested the resistance at ₹900 and stayed range-bound. The indicators in the weekly chart display weakness and the stock could remain range-bound for some more time.
A near-term support is at ₹750 and a slump below this base level can pull the stock down to ₹700 and then to ₹660 levels in the medium term.
An emphatic breakthrough of the lower boundary at ₹600 can drag the stock down to ₹550 and ₹500 levels.
On the other hand, a decisive upward breakout of the key resistance at ₹900 can strengthen the long-term uptrend and take the stock up to ₹950 and ₹1,000 levels in the long run. You can wait and buy the stock at lower levels with a long-term stop-loss at around ₹580.
Send your queries to techtrail@thehindu.co.in
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