Technical Analysis

Book profits in Venky’s India

Yoganand D | Updated on March 19, 2018

A fall below the supports at ₹4,000 and ₹3,700 can drag the stock down to ₹3,000

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

I have bought shares of Venky's (India) at ₹1,470. At what price should I book profit.

C N Karambelkar

Venky's India (₹4,117.9): The stock of Venky's India has been in a long-term uptrend since late 2016. This February, the stock decisively breached a key resistance at ₹3000 and accelerated its uptrend. Nevertheless, it encountered a key resistance at around ₹4,530 in early March. After registering a new high at ₹4,559 on Thursday, the stock started to decline, forming a dark cloud cover candlestick pattern in the daily chart, which is a bearish reversal pattern. Moreover, the daily relative strength index is displaying negative divergence, indicating that a medium-term trend reversal is on the cards. The indicators in the monthly chart also hover in the overbought territory, implying a correction. Therefore, you can consider taking partial profits off the table at current levels.

 

 

 

A decisive fall below the immediate supports at ₹4,000 and ₹3,700 can drag the stock down to ₹3,000 in the short to medium term. Further breach below the significant medium-term support level of ₹3,000 will alter the medium-term uptrend and drag the stock down to ₹2,500 levels. Investors with a long-term perspective can stay invested as long as the stock trades above the key base level of ₹2000, with a stop-loss placed at ₹1,950 levels. On the other hand, an up-move beyond ₹4,350 can push the stock northwards to ₹4,500 and then to ₹4,600 levels.

What is the long-term outlook for Sintex Plastics Technology?

Sintex Plastics Technology (₹62.3): Since listing in August 2017, the stock of Sintex Plastics Technology has been in an intermediate-term downtrend. The medium-term trend is also down for the stock. However, the stock found support at around ₹60 in the previous week and began to move higher. The stock faces a key resistance ahead at ₹68.

 

 

 

A strong rally above ₹75 can pave way for an upmove to ₹85 and ₹95 levels in the short to medium term. To alter the intermediate-term downtrend, the stock needs to emphatically break above the psychological level of ₹100. Subsequent targets are ₹110 and ₹120 levels. Conversely, a decline below the immediate support level of ₹60 can drag the stock to new lows. In that case, it can find support either at ₹55 or ₹50 levels.

Send your queries to techtrail@thehindu.co.in

Published on March 18, 2018

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