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Here are answers to readers’ queries on the performance of their stock holdings.
I am holding shares of BSE Limited purchased at ₹1,160. Shall I book loss or average them, please guide.
Ashish
BSE (₹1073.3): After listing at ₹1,085 in early February 2017 in National Stock Exchange, the stock of BSE started to decline. While trending down, the stock breached a psychological support level of ₹1,000 in mid-February. The stock reached the oversold territory and found support at ₹886 in early March, which is the new low for the stock. Subsequently, it changed direction and has been on a medium-term uptrend since then. Last week, the stock gained bullish momentum and breached a key resistance in the band between ₹1,030 and ₹1,050 by gaining 9.3 per cent backed by good volumes. This rally has strengthened the stock’s medium-term uptrend.
The stock is in a nascent short-term uptrend. It trades well above its 21-day moving average. The daily indicators are featuring in the positive territory backing the uptrend. With the available limited data, the key immediate resistance is at ₹1,200. The stock can extend its upmove and test this level in the short term. Strong rally beyond this level can take it higher to ₹1,300 levels.
On the downside, the immediate support is placed at ₹1,030. A slump below this level can pull the stock down to ₹980-₹1000 support band. Decisive downward break of this base zone will alter the medium-term uptrend and pull the stock down to ₹935 and then to ₹900 levels. You can consider averaging the stock on declines while maintaining a stop-loss at ₹935 levels.
I have shares of Dena Bank bought at ₹51 and Jaypee Infra at ₹15. Should I hold or exit?
Souniya
Dena Bank (₹37.9): The long-term trend is down for Dena Bank’s stock. After a medium-term corrective up move from December 2016 low of ₹31.7, the stock encountered resistance at ₹50 in early May.
The stock has failed to sustain its bullish movement and instead it reversed direction from the key resistance level of ₹50. Over the last two weeks, the stock has been on a near-term downtrend. Consider exiting the stock — if it rallies. A fall below the immediate support at ₹36 can drag the stock down to ₹31. Further decline below ₹31 can pull the stock down to ₹28 or ₹26 levels in the long term. On the upside, the stock needs to emphatically break above ₹50 to strengthen the bullish momentum and take it up to ₹56 and ₹64 levels in the long run.
Jaypee Infratech (₹13.1): The stock of Jaypee Infratech met with a key long-term resistance at ₹15 in late April and started to decline. Short-term outlook is bearish for the stock. A slump below the immediate support level of ₹13 can pull it down to ₹11 and then to ₹10.
Further decline below ₹10 can drag the stock down to ₹8.5 or even to ₹7 in the medium term. Strong break above ₹15 is required to reinforce the bullish momentum to take it up to ₹17.5 and then to ₹19.5 in the medium term. Exit the stock — if it rallies.
Send your queries to techtrail@thehindu.co.in
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