Your Stock Portfolio. Watch out for Titan’s glitter

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

Please indicate the long-term outlook for ACC and Titan.

Pandurang D

ACC (₹1,506.5): The stock has been on a long-term uptrend since its 2008 trough of around ₹400.

Investors with a long-term perspective can stay invested as long as the stock trades above the key support band between ₹950 and ₹970.

The stock’s 50 per cent fibonacci retracement level of the uptrend also coincides with this support band. Medium- and short-term trend is also up.

But the short-term uptrend seems to be losing its momentum. The stock is witnessing selling pressure near its key resistance zone between ₹1,500 and ₹1,550.

A downward reversal from this level can pull the stock down to ₹1,400 or to ₹1,350.

However, a bounce back from either ₹1,350 or ₹1,250 can take the stock to new highs of ₹1,600 or ₹1,700 in the long term.

Titan Company (₹388): The stock of Titan Company is also in a long-term uptrend. This will remain intact as long as the stock's long-term support at ₹220 holds. Investors with a long-term perspective can accumulate long positions with a stop-loss at ₹220.

However, the medium-term uptrend began from the January low of ₹203 . The stock is encountering resistance at ₹398, and can witness corrective declines.

The weekly indicators and oscillators are displaying negative divergence, backing the corrective fall.

However, the medium-term uptrend will continue as long as the stock trades above ₹300 and investors can hold the stock, with stop-loss at this level.

A decisive fall below ₹300 can drag the stock down to ₹280 or ₹260 levels. Immediate supports are at ₹360 and ₹330 levels. Strong rally above ₹400 can take the stock higher to ₹440.

Can I buy Tata Chemicals and Bajaj Electricals at current levels with a long-term horizon?

Binay Bist

Tata Chemicals (₹397.6): Since bottoming out at the September 2013 low of ₹240, Tata Chemicals has been on an intermediate-term uptrend, with minor corrections.

However, the stock has now encountered resistance in the zone between ₹400 and ₹420.

A downward reversal from this zone can pull the stock down to its immediate support at ₹370 or ₹350.

A further fall below ₹350 can pull the stock down to ₹320 levels in the short- to medium-term.

As you are an investor with a long-term perspective, you can make use of these declines to buy the stock with a stop-loss at ₹290 levels.

On the upside, the stock needs to conclusively breach the key resistance level of ₹420. Long-term targets for the stock are ₹450 and ₹470 levels respectively.

Key supports below ₹300 are pegged at ₹275 and ₹250 levels.

Bajaj Electricals (₹284.7): Significant resistance at ₹375 has kept Bajaj Electricals under pressure since early July, and the stock has been on a medium-term downtrend.

It emphatically breached its intermediate-term trendline of around ₹320 in late July this year while trending down. Nevertheless, the crucial support and 200-day moving average are providing support for the stock at around ₹270. A decisive fall below ₹270 can strengthen its downtrend and pull it lower to ₹230 or to ₹200 in the medium-term.

Investors should tread with caution as long as the stock trades above ₹270. Wait for the stock to complete its downtrend and buy it with a stop-loss at ₹190. An upward reversal from the key support at ₹230 can take the stock higher to ₹300 and ₹340 in the long-term.

To strengthen the uptrend, the stock needs to breach its significant long-term resistance at ₹340. The stock can then trend higher to ₹365 and ₹385 in the long run.

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