Here are the answers to readers’ queries on the performance of their stock holdings.
I hold shares of Bharati Infratel. Can I exit and re-enter the stock? What will be a good price to do so?
RT Rajasekaran
Bharti Infratel (₹192.5): Since encountering a significant long-term resistance at ₹480 in October 2017, the stock of Bharti Infratel has been on a long-term downtrend.
The stock recorded a multi-year low at ₹121.2 in late March this year and had been on a medium-term uptrend until it met with a key resistance between ₹240 and ₹250 in early June.
Thereafter, the stock started to decline, and appears to have resumed the long-term downtrend.
Currently, it is poised above a key support at ₹180 and the 50 per cent Fibonacci retracement level of the previous uptrend.
An emphatic fall below this base can pull the stock down to ₹160 and then to ₹150 levels.
A further fall below ₹150 will strengthen the long-term downtrend and drag the stock down to retest the support at ₹121 over the medium term.
On the upside, the stock has an immediate resistance at ₹210.
A decisive rally above this barrier can bring back bullish momentum and take the stock northwards to the ₹240-250 range over the medium term.
An emphatic break above ₹250 will be positive from a long-term horizon and can take the stock northwards to ₹280 and then to ₹300. A move beyond ₹300 is needed to alter the downtrend and take the stock higher to ₹325 and ₹350 in the long run.
You can make use of declines to buy the stock with a stop-loss at ₹140. Consider booking partial profits if the stock fails to move beyond ₹250 levels.
I have shares of Tata Motors DVR, purchased at a higher price than now. What is the outlook for the stock? Should I hold and average, or sell my holdings?
Muhamed Aleef EM
Tata Motors - DVR (₹41): The stock has been on a long-term downtrend since its 2016 high of ₹377. It marked a multi-year low at ₹28 in late March this year, and started to consolidate sideways in a wide range between ₹30 and ₹50 thereafter.
An emphatic break above ₹50 can push the stock northwards to ₹65 and then to ₹84 over the medium term. A strong break above the long-term hurdle at ₹84 will alter the intermediate-term downtrend and accelerate the stock northwards to ₹100.
An upmove beyond this level can take the stock higher to ₹115 and then to ₹133 over the long term. As long as it trades below the crucial resistance between ₹200 and ₹210, the long-term downtrend will remain in place.
On the downside, if the stock tumbles below the lower boundary of ₹30, it can bring back selling pressure and pull the stock lower to ₹21 and then to a new low. You can consider averaging the stock on declines with a stop-loss at₹30.
Send your queries to techtrail@thehindu.co.in
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.