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Here are answers to readers’ queries on the performance of their stock holdings.
I have purchased Aban Offshore at ₹820 and wish to hold it. Kindly let me know the short-, medium- and long-term outlook.
B. Parab
Aban Offshore (₹732.6 ): Following a sharp fall in early July this year, the stock found support at ₹750 and bounded up. However, this up-move failed to turn into an uptrend.
After hitting resistance at around ₹800 in early August, the stock started to decline and decisively breached the key support at ₹750. This level has now turned into a key resistance level. Only a strong breakthrough of ₹750 will take the stock higher to ₹800 and then to ₹830 in the medium term. Next resistance above ₹830 is pegged at ₹940.
But a decisive fall below the stock’s immediate support at ₹700 will have an adverse effect and the stock can decline to ₹600 and then ₹550 in the medium to long term. In this scenario, exit the stock and buy at lower levels.
Subsequent supports below ₹550 are placed at ₹500 and ₹450.
I hold Anant Raj at ₹70. Shall I hold for the long term?
Biju P
Anant Raj (₹57.7): The stock of Anant Raj is in a long-term downtrend; only a strong move above ₹150 will bring in bullish momentum. But this is unlikely to happen as the stock’s significant resistance at ₹100 is limiting rallies. In early June 2014, the stock encountered a hurdle around ₹85 and began to decline. It has been on a short-term downtrend since then. However, the stock is currently testing the 200-day moving average and an important support at ₹54, which can provide a near-term breather.
A fall below this level will strengthen the downtrend and drag the stock down to ₹50 and then to ₹42 levels in the medium term. Exit the stock on rallies. Immediate resistances are at ₹65 and ₹74 levels.
Is it better to hold shares of Gateway Distripacks purchased at ₹240 or sell? Please give the technical outlook.
Ajit
Gateway Distriparks (₹255 ): Though the stock breached the key resistance at ₹245 in the previous week after testing it for over two months, its indicators are projecting a bleak medium-term outlook. Having stuck to the stock for many years, it is advisable that you exit the stock now and re-enter at a later stage.
The stock has important support band between ₹220 and ₹230; a decisive fall below this will pave way for a downmove to ₹180. Next support is at ₹155. Important resistances are at ₹261 and ₹270.
How are Shipping Corporation and PTC India poised for the next 6-12 months?
Anish Jose
Shipping Corporation of India (₹60.4) : Since the August 2013 low of ₹26, the stock has been on an intermediate-term uptrend. But, after recording a 52-week high at ₹73 in June this year, the stock embarked on a corrective downtrend. It took support at ₹54 in early August and resumed its uptrend.
The stock recently broke through its key resistance as well as a downtrend-line around ₹59 emphatically, on good volumes. Next major hurdle is at ₹70; a conclusive breach of this level in the coming months will have a positive impact and take the stock northwards to ₹80 or even to ₹100 in the long term. However, a plunge below ₹54 can pull the stock down to ₹50 initially and then to ₹43 or ₹40 in the same time frame.
PTC India (₹86.4) : The stock found support at ₹80 in early August and began to move upwards. But this up-move is testing resistance at ₹90 and is finding difficulty in breaking through.
A strong rally above the significant resistance at ₹100 is needed to strengthen the stock’s uptrend and accelerate it to ₹112 or ₹126 in the medium term. A fall below ₹80 will have bearish implication and pull the stock down to ₹70, ₹65 and then to ₹55 level in the medium term.
I bought Tata Metaliks at ₹125. Please advise the stop-loss, resistance, and near-term target.
Rajendran
Tata Metaliks (₹109.2) : Since recording a 52-week high at ₹144 on July 28, the stock has been on a short-term downtrend. Currently, the stock is hovering above a support at ₹100. A tumble below this level will drag it down to ₹80. Next support is at ₹70. Exit the stock. Resistances to note are at ₹118 and ₹138.
Send your queries to techtrail@thehindu.co.in
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