Your Stock Portfolio. Canara Bank at multi-year low

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

I am a long-term investor. I bought Canara Bank shares at ₹258 per share. What are your views on Canara Bank for a time-frame of three-four years? Can I buy more shares at the current levels?

Mahipal Madasu

Canara Bank (₹179.9): The stock of Canara Bank tumbled 18 per cent over the previous week and has registered a multi-year low at ₹178.6 on Friday. Since the January 2015 peak of ₹478, the stock has been on an intermediate-term downtrend.

Even the medium and short-term trends are down for the stock. In early December 2015, the stock decisively breached a key support at ₹250; this intensified the downtrend.

Further, the stock conclusively breached key support at around ₹200 last week. There has been an increase in daily volumes over the past three trading sessions, along with the stock’s decline. The daily indicators and oscillators feature in the oversold territory, indicating that the stock could be find a base soon and move sideways.

Key supports now are at ₹150 and ₹135. You can consider averaging the stock in declines with a stop-loss at ₹135. Subsequent support below ₹135 is at ₹100.

To alter the short-term downtrend, the stock needs to move above the immediate resistance levels at ₹200 and ₹220.

Strong breakthrough of ₹250 is required to change the medium-term bearish outlook and take the stock up to ₹300 and then to ₹350.

The intermediate-term downtrend will remain in place as long as the stock trades below the long-term resistance band between ₹340 and ₹350. Long-term target above ₹350 is ₹400.

I have shares of TBZ bought at ₹150. Can I average at current levels?

Navendu Sharma

Tribhovandas Bhimji Zaveri (₹78.8): The stock of Tribhovandas Bhimji Zaveri (TBZ) has been in a long-term downtrend from its all-time high of ₹301 marked in December 2012. Both medium and short-term trends are also down. It extended its downtrend and recorded an all-time low at ₹75 in the week ago.

The indicators and oscillators in the daily and weekly charts feature in the oversold territory, indicating an upward reversal in the short term.

There in an increase in daily volumes over the past two weeks. Further, the daily moving average convergence divergence indicator displays positive divergence, signalling that the ongoing downtrend could come to a halt and reverse higher in the near future.

The stock can find support at ₹70 or ₹60 and bounce back. A rally above the immediate resistance at ₹88 could be a cue for averaging the stock with a stop-loss at ₹75. Next resistances are at ₹95 and ₹115. An emphatic rally above the long-term resistance level of ₹140 is required to alter the medium-term downtrend and take it upwards to ₹170 or ₹185 in the long run.

What are the long term prospects for Astec Lifesciences? Is there still some steam left in its recent run up? Can I enter at current levels?

Sudhin

Astec Lifesciences (₹210): The stock of Astec Lifesciences slumped 11 per cent last week and tests a key base at ₹207. Yes, the stock has lost its strength to extend its long-term uptrend and has been in a sideways consolidation move in the band between ₹207 and ₹255 since August 2015.

The outlook is negative and the stock could break the current support at ₹207 and extend its decline to ₹170 in the medium term.

Next support is at ₹135. You can wait and buy at lower levels with a stop-loss at ₹130. Strong rally above ₹230 can take the stock northwards to ₹255. Resistance above ₹255 are placed at ₹270 and ₹300.

Send your queries to techtrail@thehindu.co.in

COMMENT NOW