Comments
Here are answers to readers’ queries on the performance of their stock holdings.
What is the outlook for Ashok Leyland and South Indian Bank?
Pavithra Baskaran
Ashok Leyland (₹92.3): Since recording a new high at ₹167.5 in May 2018, the stock of Ashok Leyland has been on a medium-term downtrend. The long-term uptrend that started in mid-2013 is weakening. The stock has been on a short-term downtrend since early November 2018. But it now tests a significant long-term support in the ₹90-92 band; the 50 per cent fibonacci retracement level of the long-term uptrend coincides with this band.
A strong break below this support can drag the stock down to the key trend-deciding support in the ₹75-80 range. As long as the stock trades above this zone, the long-term uptrend will remain in place. An upward reversal from the key supports can take the stock higher to ₹105 and ₹113 in the short term.
An emphatic break above the key resistance level of ₹120 will take the stock up to the significant medium-term resistance level of ₹130. Next targets on a breakthrough of ₹130 will be ₹150 and ₹160. Investors with a long-term perspective can stay invested with a stop-loss at ₹72. Key supports below the long-term support level of ₹75 are at ₹70 and ₹60.
South Indian Bank (₹15.5): The stock of South Indian Bank is on a downtrend both in the medium term as well as long term. In the short term, the stock has been moving sideways in the ₹15-17 band since last November. A clear break-out of this sideways consolidation phase will depict the next short-term trend.
An upward break of ₹17 can push the stock higher to ₹18 and ₹20 over the medium term.
On the downside, if the stock tumbles below the key support level of ₹15, it will reinforce the downtrend, which could drag the stock down to ₹14 and ₹13.
A further fall below ₹13 can pull it lower to ₹12 and ₹10 in the long term.
Only an emphatic break above the vital resistance at ₹23 will alter the medium-term downtrend and take the stock up to ₹25 and ₹27 in the coming months.
Send your queries to techtrail@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.