Here are answers to readers’ queries on the performance of their stock holdings.
I hold shares of Avanti Feeds, bought at ₹2,475 per share. What is its long-term outlook?
Avanti Feeds (₹2,413.4): After a breakthrough of the key long-term resistance at around ₹700 in March 2017, the stock of Avanti Feeds experienced a strong rally until it registered a new high at ₹3,000 in November.
The stock is a 2017 multi-bagger. However, profit booking and negative divergence in the indicators saw the stock reverse direction in November. Since then, it has been in a medium-term downtrend.
A key support in the band between ₹2,100 and ₹2,200 halted the stock's decline in late January and early February this year.
The stock subsequently began to move sideways. On Friday, the stock gained 4.5 per cent with good volume. But it faces vital resistances ahead at ₹2,500 and ₹2,600 levels.
A decisive up-move beyond these resistances can take the stock higher to ₹2,700, which is the next significant medium-term resistance as well as trend-deciding level.
Such a breakthrough can pave the way for an up-move to ₹2,900 and ₹3,000 level in the medium term. You can average at lower levels and hold the stock with a stop-loss at ₹2,050. Consider taking partial profit at ₹3,000 levels, which is a key medium-term resistance level.
Further break above this barrier can push the stock higher to ₹3,200 levels.
Conversely, if the stock conclusively plunges below the key support zone between ₹2,100 and ₹2,200, it will strengthen the bearish momentum and pull the stock down to ₹1,950 and ₹1,800 levels.
Key long-term support is in the band between ₹1,600 and ₹1,700. Long-term uptrend will remain in place as long as the stock trades above this support zone. Investors with a long-term perspective can stay invested with a stop-loss at ₹1,600 levels.
What is the prospect for Opto Circuits?
Opto Circuits (₹9.55): The stock of Opto Circuits is in a bear grip across all time-frames.
A strong rally above ₹11.5 is required to strengthen the bullish momentum and push the stock higher to ₹14 and ₹15 in the medium term.
Key supports are at ₹9.1 and ₹8.7. A slump below ₹8.7 can drag the stock down to ₹8 and then to ₹7. Desist taking positions in this stock.
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