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Here are answers to readers’ queries on the performance of their stock holdings.
I have shares of ABB at ₹1,334 and Ingersoll-Rand at ₹675. What are the levels at which to exit and add, if it is worth adding any.
Manoj
ABB India (₹1,275.8): The stock of ABB bottomed out in August 2013 at around ₹448. Since then, the stock has been on a long-term uptrend. The medium-term trend is also up.
However, the stock encountered resistance at around ₹1,500 in February 2015. It has been on a short-term downtrend since hitting this peak. After retracing 61.8 per cent Fibonacci retracement level, the stock found support around ₹1,200 recently and began moving upwards.
As long as the stock trades above ₹1,200, its medium-term uptrend will remain in place. A decisive fall below this level will mar the uptrend and pull the stock down to ₹1,100 or even to ₹1,000 in the medium term. Consider averaging at lower levels with a stop-loss at ₹970. To alter the short-term downtrend, the stock needs to rally beyond ₹1,350. Such a rally can push the stock northwards to ₹1,400 and then to ₹1,500 in the medium term.
Ingersoll-Rand India (₹1,000.5): The stock has been on an uptrend from its September 2013 low of ₹301. While trending upwards, the stock decisively breached key long-term resistances at ₹545 and ₹600 and went on to record a new high at ₹1,107 in early March this year. Since then, the stock has been moving sideways in the band between ₹975 and ₹1,100 with negative bias.
The indicators in the daily and weekly charts are showing negative divergence, implying that trend reversal in on the cards.
As you currently sit on good profits, consider booking partial profits now. A strong fall below the immediate support will pull the stock down to ₹900 and ₹850 in the medium term. But further fall below ₹850 will mitigate the stock’s medium-term uptrend and pull it down to ₹800 and then to ₹700 in the coming months. Key immediate resistances are placed at ₹1,050 and ₹1,100.
What are the prospects for Fluidomat and Gujarat Foils.
TVS Prakash Rao
Fluidomat (₹258.7): In January 2015, the stock's uptrend accelerated and it recorded a new high at ₹315. The stock subsequently changed direction and has been on a short-term downtrend since the January high.
A conclusive fall below the immediate support at ₹233 will pave the way for continuation of the downtrend to ₹210.
Medium-term uptrend will be negated if the stock decisively falls below ₹210 and the long-term uptrend will be marred on a plunge below ₹175. Such a fall can drag the stock down to ₹140 level in the medium to long term.
On the upside, a strong move above the immediate short-term resistance level of ₹280 could push the stock northwards and retest the next resistance at ₹315 levels.
Gujarat Foils (₹60.6): You should be cautious while dealing with the stock of Gujarat Foils as it moves from circuit to circuit without giving any opportunity to buy or sell.
After registering a 52-week high at ₹94.9 in early November 2014, the stock has been on a medium-term downtrend. However, it found support at around ₹55 in the previous week.
Last week, the stock gained almost 10 per cent. It now needs to rally above the immediate resistance at ₹66 to alter the short-term downtrend and move higher to ₹75.
Further rally beyond ₹75 is required to reverse the medium-term downtrend and rise to ₹80 and then to ₹85 or ₹90 in the coming months. But a decisive fall below ₹55 can pull the stock down to ₹49 and then to ₹41.
Send your queries to techtrail@thehindu.co.in
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