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Here are answers to readers’ queries on the performance of their stock holdings.
What is the outlook for Tata Global Beverages and Asahi India Glass?
—Biswajit Das
Tata Global Beverages (₹147.3): The stock of Tata Global Beverages breached its significant long-term support at ₹150 last week. This level had provided base during August and October this year. This downtrend will remain in place as long as the stock trades below ₹160 levels.
The stock can extend its downtrend and test its support at ₹135 in the coming weeks. A breach of this base level can drag the stock down to ₹125 or even to ₹115 in the medium term.
On the upside, the stock needs to emphatically breach the ₹160 for an up move to ₹170, which is again a key resistance level. Next resistance is placed at ₹180.
Asahi India Glass (₹116.7): The stock is on an uptrend across all time frames — short-, medium- and long-term. However, it encountered a key long-term resistance in the band between ₹126 and ₹136 in November 2014. It is finding it difficult to surpass this hurdle. The indicators and oscillators in the weekly chart signal some weakness.
A decisive fall below ₹100 will alter the short-term uptrend and pull it down to ₹80 or ₹70 in the medium term. However, as long as the stock trades above ₹70 levels, there will not be any threat to its long-term uptrend. The stock can revisit ₹136 levels if it stays above ₹100. But it needs to conclusively breach ₹136 levels for an up move to ₹150.
Is Excel Crop Care worth buying at current levels?
—Revathi Venkatraman
Excel Crop Care (₹1,142.3): The stock reversed its trend in late November 2014. The short-term trend is down. The significant resistance at ₹1,200 levels is limiting the stock’s up move. A fall below ₹1,020 will mar its medium-term uptrend and pull it down to ₹920 and then to ₹800 levels in the medium-term. Hence, desist buying the stock at current levels.
Investors who are sitting on profits can consider taking it off the table at this juncture. Key resistance above ₹1,200 is at ₹1,350 levels.
What is the outlook for Sumeet Industries bought at ₹18?
—Raju Byati
Sumeet Industries (₹15.2): The stock has been on a long-term downtrend since registering an all-time high at ₹46 in 2011. The intermediate-term trend is also down. Nevertheless, the stock found support around ₹14 in April 2014 and has been on a sideways consolidation phase in the band between ₹14 and ₹18.5.
A strong fall below ₹14 can pull it down to ₹12.5 and then to ₹10. Investors can hold the stock with a stop-loss at ₹13.7. An upward breakthrough of ₹18.5 can take the stock to ₹22.5 and then to ₹25.
The stock needs to decisively breach ₹25, for a rally to ₹30 or ₹33.
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