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Yoganand D | Updated on March 09, 2014 Published on March 09, 2014

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Please give your medium and long-term outlook for Syndicate Bank.

Eldho Mathew

Syndicate Bank (₹88.7): Since finding support at ₹61 in August 2013, the stock of Syndicate Bank has been on an intermediate-term uptrend. However, the stock has been on a corrective downtrend in the last two months. Its significant support at ₹78 is cushioning the stock’s fall for over a month. An emphatic fall below this support level can drag the stock down to ₹72, ₹67 and ₹61 in the medium-term. But, for now the stock is finding support at ₹78, and trending up . It is testing the immediate resistance in the zone between ₹85 and ₹89 (200-day moving average). A breakthrough can take the stock higher to ₹93. A further breach of ₹93 will result in a strong up move to ₹100 and then to ₹108 in the medium-term. The stock has significant long-term resistance in the band between ₹120 and ₹125.

Accelya Kale and RS Software were covered in Query Corner in October 2013. Is there any change in the technicals?

Vageesh

Accelya Kale Solutions (₹675.4): The stock has taken support at ₹550 twice since October 2013 and moved up. However, after registering a peak at ₹805 in late December 2013, the stock started to decline and has been on a medium-term downtrend. Investors with a long-term perspective and sitting on profits can consider partially booking it at this juncture. They can hold the rest maintaining a stop-loss at ₹550. An emphatic fall below ₹550 can drag the stock down to ₹440 in the medium-term.

We reiterate that the long-term trend in the stock will reverse lower only on a decisive close below ₹440. In such a scenario, the stock can decline to ₹350. On the upside, the stock has significant resistance in the band between ₹800 and ₹820, which will be difficult to surpass. Immediate resistance is pegged at ₹750 and support is placed at ₹630.

R.S.Software India (₹195.5): The stock continued its uptrend that commenced in August 2013, from the key support level at ₹110. However, after encountering the long-term resistance at ₹224, the stock reversed lower last week. Investors with a long-term perspective sitting on profits can consider taking profits at this juncture. A conclusive fall below ₹175 will pull the stock down to ₹155 in the medium-term. Next important supports are at ₹135 and ₹110. Investors with long-term perspective can buy the stock at ₹110 with a stop-loss at ₹100. An upward reversal from this level can take it higher to ₹200 and then to ₹224 in the long-term. Immediate resistances to watch are ₹200 and ₹224.

I hold IDBI Bank bought at various prices from 2010 to 2013, averaging at ₹89. Should I sell the shares ?

S Subramanian

IDBI Bank (₹59.8): The stock is in a downtrend across all time frames, short, medium and long-term. However, there are some positive signs, since the stock took support at ₹53 in early February 2014 (it had reversed higher from this level previously in September 2013). This makes ₹53 a significant long-term support level. Therefore, you can consider holding the stock with a stop-loss placed at ₹53. Strong rally above ₹62 can take it to ₹67 initially and then to ₹75. An emphatic breakthrough of long-term resistance at ₹75 can alter the medium-term downtrend and take the stock northwards to ₹100 in the ensuing months. On the downside, a conclusive fall below ₹53 can take the stock lower to ₹44 in a worst case scenario.

Request long term outlook on BHEL.

Pandurang

BHEL (₹183.7): Ever since taking support at ₹100 in August 2013, BHEL has been on an intermediate-term uptrend, forming higher peaks and troughs. Following a three month sideways consolidation movement below the significant resistance at ₹175, the stock surged almost 10 per cent last week, breaking out of this key resistance. This has reinforced its bullish momentum. Moreover, the stock has decisively breached its moving average compression (21-, 50- and 200-day moving averages) at ₹160 in early March 2014 signalling a long-term trend reversal. The stock can trend higher to ₹205 and then to ₹240 in the long-term. Important supports are pegged at ₹150 and ₹130.



Published on March 09, 2014
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