Here are answers to readers’ queries on the performance of their stock holdings.
Please give the short- and long-term technical analysis of Biocon?
Pankaj Dhawan
Biocon (₹495.6): Since the time the Biocon stock took support at ₹90 in 2009, it has been on a long-term uptrend. However, in early July 2014, the stock hit a key resistance at ₹500 and started falling. It is now testing an important support level at ₹485.
A fall below this level can drag the stock to ₹450 and then to ₹420. Further declines below ₹420 can drag the stock down to ₹400 and then to ₹380 levels.
Long-term uptrend will stay in place as long as the stock trades above ₹320. It is a quality stock that can be added to your portfolio on declines with a stop-loss at ₹350. Long-term targets are ₹550 and ₹600.
Indicate the prospects for Alok Industries.
MP Mithra
Alok Industries (₹11): Following a strong rally in May and early June 2014, the stock of Alok Industries faced a key resistance around ₹16. Since then, the stock has been on a medium-term downtrend. Strengthening this trend, the stock tumbled 13.5 per cent breaching its 21- as well as 50-day moving averages last week. Currently, the stock is testing an important long-term support at ₹10.5 levels.
A decisive fall below this level can drag the stock down to ₹9 and then to ₹7.5 levels. Next key long-term support is at ₹6. On the upside, the stock needs to breach above ₹13.5 to alter the medium-term downtrend which can then take the stock higher to ₹16. Further rally above ₹16 can push the stock higher to ₹20 in the long term.
What is the short- and long-term target of Godrej Industries?
Bhavesh Pasad
Godrej Industries (₹307.4): The stock of Godrej Industries fell 7 per cent breaking below a key long-term support around ₹322 in the past week.
This fall has also breached the intermediate-term uptrend line at around ₹320. The stock is now testing its 200-day moving average level currently poised at ₹308, which can provide a temporary base. Next significant support is in the band between ₹285 and ₹290.
Investors should tread with caution around this support band.
A strong break below this base level can drag the stock down to ₹265 and then to ₹250 in the medium term.
Nevertheless, long-term uptrend won’t be under threat as long as the stock trades above ₹210 levels.
Investors with a long-term perspective can stay invested with a stop-loss at ₹210.
But, traders with a short-term perspective should desist trading in the stock.
Only a strong rally above ₹322 will reinforce short-term bullish momentum and take the stock higher. The next targets will be ₹350 and ₹370. Long-term targets are ₹400 and ₹425.
I would like to know the prospects of Bank of Baroda. Can I buy this stock at the current levels?
Sudheer Pazhur
Bank of Baroda (₹897.8): The stock has been on a long-term uptrend after finding support at around ₹430 in August 2013. But long-term resistance band between ₹960 and ₹1,000 kept the stock on hold from gaining further during May and October 2014. On the downside, the significant support zone between ₹850 and ₹860 now provides a base for the stock. A decline below this zone can strengthen the bearish momentum and drag the stock to ₹800 or even ₹750 in the medium term. Hence, investors should wait and buy at lower levels with a stop-loss at ₹740. Upward reversal from the key support can take it higher to ₹960. But a strong upward break-out of the long-term resistance is needed for an up move to ₹1,050 or ₹1,100 over the long term.
Send your queries to techtrail@thehindu.co.in
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