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Here are answers to readers’ queries on the performance of their stock holdings.
What are the technical prospects for Berger Paints and Tata Motors
Sanjib Parida
Berger Paints India (₹256.4): The significant long-term support in the ₹235-240 held well for the stock of Berger Paints India. This support band consistently provided base for the stock in February and March. After taking support, the stock advanced 5.5 per cent last week. This rally has formed a bullish engulfing candlestick pattern in the weekly chart, implying a bullish trend reversal.
Moreover, the stock has decisively breached its 50 and 200-day moving averages last week and trades well above them. The daily relative strength index has entered the bullish zone from the neutral region while the weekly RSI continues to feature in the neutral region. Both the daily and weekly price rate of change indicators have entered the positive territory, implying emergence of buying interest.
The indicators and bullish engulfing pattern in the weekly chart clubbed together paint a rosy picture on the stock. The short to medium-term outlook is bullish for the stock. An emphatic breakthrough of the key barrier at ₹270 will improve the bullish momentum and take the stock higher to ₹290 and ₹300 in the medium term.
Further rally beyond ₹300 can push the stock to ₹320. Investors with a medium to long-term perspective can buy the stock in declines while maintaining a fixed stop-loss at ₹230. On the other hand, a conclusive tumble below the key support band between ₹235 and ₹240 can drag the stock down to 220 and 210 levels. Next significant support is in the range ₹195-200 range. Investors with a long-term horizon can stay invested with a stop-loss at ₹180.
Tata Motors (₹327.4): Since encountering a key long-term resistance at around ₹600 in September 2016, the stock of Tata Motors has been in an intermediate-term downtrend. Both the medium and short-term trend is also down. The stock trades way below its 50 and 200-day moving averages. Nevertheless, the stock is nearing a key long-term support in the ₹300-310, which can provide cushion for the stock's downtrend.
A subsequent upward reversal needs to be observed. Such an upward reversal can take the stock higher to ₹355 and ₹375 levels. To alter the short-term downtrend, the stock required to conclusively move beyond ₹375 levels. Key resistances above ₹375 are at ₹400 and ₹425 levels. Supports below ₹300 are pegged at ₹280 and ₹265.
What is the outlook for Castrol?
Sudhin B
Castrol India (₹205.1): Last week, the stock of Castrol India advanced 3 per cent in the midst of choppiness, taking support at ₹195. In early this February, the stock took support at ₹175 and began to trend upwards. Since then, the stock has been in a short-term uptrend. In the medium term, the stock is in a sideways consolidation phase in the wide range between ₹175 and ₹212.
An upward break-out of this range can push the stock northwards to ₹225 and to ₹245 levels. Conversely, if the stock plunges below the immediate support level of ₹195 can find support at ₹185. But a slump below ₹185 will mar the short-term bullish outlook and pull the stock down to ₹175 in the coming months.
Send your queries to techtrail@thehindu.co.in
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