ACC builds on a strong foundation

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

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

Rajesh Reddy

Bank of India (₹234.4): The stock has been on a long-term downtrend from its all-time high at ₹588 in October 2011. This downtrend came to a halt at ₹126 in August 2013. Since then, the stock has been trending northwards.

But, recently, the stock encountered a key resistance in the band between ₹240 and ₹250 which it failed to break in November 2013 and January 2014, making this band a significant resistance level.

A strong breakout of this zone will take the stock higher to ₹270 initially and then to ₹300-310 in the medium term.

The next significant long-term resistance is in the ₹340-₹350 zone.

Inability to surpass ₹250 in the weeks ahead can drag the stock lower to ₹210 and then to ₹170 in the medium term. If the support at ₹170 fails to hold, the stock can continue its long-term downtrend and trend lower to ₹126 in the long run.

I have shares of McNally Bharat Engineering, purchased at an average price of ₹65 per share. Is it safe to hold this for another quarter or two?

Prasanna CS

McNally Bharat Engineering Company (₹70.9): Since bottoming out in August 2013 at ₹37, the stock has been on an intermediate-term uptrend.

McNally Bharat has been on a nascent short-term uptrend after taking support at ₹48 in late February.

The stock's recent rally has pushed the stock above your average purchase price.

However, the stock is facing a key resistance ahead at ₹75. Failure to surpass this level will be cue for exiting the stock with a stop-loss at ₹67.

A strong breakout from the ₹75 level will push the stock northwards to ₹80 and ₹85 in the medium term. On the other hand, a fall below ₹65 can pull the stock down to ₹60. A fall below ₹60 will mar the short-term uptrend and pull the stock down to ₹53 or ₹48 in the short term.

Request long-term outlook on the stock of ACC.

Pandurang.D

ACC (₹1388.4): ACC has been on a long-term uptrend since its 2008 low of ₹369. The stock's significant support as well as 50 per cent Fibonacci retracement level of the prior uptrend at ₹950, arrested the fall last September.

The stock managed to stay above this support level in January and early February this year and started to trend northwards.

The stock has witnessed 26 per cent gains in the month of March alone.

While trending up, the stock decisively broke its significant long-term resistance at ₹1250.

But the stock recently met with a key resistance at ₹1,400 and paused for a minor correction.

Resumption of the long-term uptrend can take the stock higher to ₹1,450 and then to ₹1,500.

Strong rally above ₹1,500 will pave the way for an up-move to ₹1,600 in the long-term.

Investors with a long-term perspective can hold the stock with a stop-loss at ₹1,230. Conversely, a fall below ₹1,250 will pull ACC down to ₹1,000-₹1,100 levels.

Please give your medium to long-term outlook for Exide.

Yeruva Suneeta

Exide Industries (₹123.4): Exide Industries will remain in a long-term downtrend as long as it trades below its significant long-term resistance level at ₹140.

An emphatic rally beyond ₹140 is required to take the stock northwards to ₹155 and then to ₹170 in the long term.

On the other hand, its key support at ₹100 is providing base for the stock. A decisive fall below this support level will strengthen the downtrend and pull the stock down to ₹80 in the long term.

Since taking support at ₹100 in January this year, the stock has been on a medium-term uptrend. But current resistance at ₹125 is halting the stock’s further up move.

It will take a while to surpass this resistance level and then trend to ₹135 or ₹140 in the medium-term. Key supports are pegged at ₹115 and ₹110.

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