Your Stock Portfolio. Britannia in a medium-term downtrend

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

Can Britannia be accumulated at this level?

Amit K Das

Britannia Industries (₹2,882.2): The long-term trend is up for the stock of Britannia Industries. Nevertheless, after marking a new high at ₹3,575 in September 2016, the stock started to decline and has been on a medium-term downtrend. While trending down, the stock decisively breached a key support at ₹3,000 in mid-November and the stock failed to move beyond this level in early December. Short-term trend is also down. The stock trades well below its 50 and 200-day moving averages.

However, the stock found support in the band between ₹2,800 and ₹2850 recently. Taking support from the band it advanced 2 per cent last week. A decisive slump below this base band can pull the stock down to ₹2,500 and ₹2,550 from which it had previously reversed higher. This support band is also a significant long-term support for the stock and a fall below this band is unlikely to happen at this juncture. You can consider accumulating the stock at current levels . You can also accumulate more if the stock slumps below the current support band and reaches ₹2,550 levels. Stop-loss can be maintained at ₹2,450.

Strong rally beyond ₹3,000 will alter the short-term downtrend and take the stock higher to ₹3,200 and ₹3,300 levels. An emphatic breakthrough of the long-term resistance zone between ₹3,300 and ₹3,400 is required to strengthen the stock’s long-term uptrend. Subsequent targets are ₹3,500 and ₹3,600 levels. Key supports below ₹2,500 are at ₹2,150 and ₹2,000 levels.

I have bought D-Link and Redington at ₹115 each. Kindly advice.

TVS Prakash Rao

D-Link India (₹118): After building a strong base by consolidating sideways in the range between ₹80 and ₹90 for more than 3 months, the stock broke out upwards in early December. Extending the short-term uptrend, the stock rose 9.5 per cent last week. Currently, the stock tests a key resistance at ₹120. An emphatic break through of this level will pave way for an up move to ₹140 and then to ₹160 in the medium term. You can consider accumulating the stock in the near future with a stop-loss at ₹95. Immediate supports are placed at ₹100 and ₹90. Conclusive fall below ₹90 will bring back selling pressure and pull the stock down to ₹80 levels.

Redington India (₹93.9): Since recording a new high at ₹147.6 in December 2014, the stock of Redington has been tending down. The stock currently tests a key support at around ₹93. A strong decline below this support will reinforce the downtrend and pull the stock down to ₹85. Further declines can drag the stock down to ₹80 and then to ₹70 in the medium to long term. Exit the stock in rallies. Strong up move beyond ₹100 can take the stock higher to ₹110-112 resistance zone in the medium-term. Conclusive breakthrough of the resistance level of ₹125 is needed to alter the downtrend and take the stock higher to ₹132 and ₹145 levels.

I have shares of GMR at ₹23. Should I hold for one more year or exit?

Joseph

GMR Infrastructure (₹11.8): The stock is in a downtrend across all-time frames- long, medium and short-term. However, significant long-term support in the range between ₹10.5 and ₹11 has been providing base for the stock since August 2015. You can consider averaging the stock at current levels with a stop-loss at ₹10.3. Strong rally beyond ₹13 can push the stock higher to ₹15 in the medium term. Further rally above ₹15 can take the stock higher to ₹16.5 and ₹18 levels in the long run. Can consider exiting the stock at either of these resistances levels.

Send your queries to techtrail@thehindu.co.in

Quickly

In a sideways movement

Key support at ₹11

Key resistance at ₹13

COMMENT NOW