Your Stock Portfolio. Can Fin Homes in a medium-term downtrend

Gopal Setty

Can Fin Homes (₹40.8.4): The stock of Can Fin Homes has been on an intermediate-term downtrend since encountering a key resistance at ₹665 July 2017.

Following a corrective up-move, the stock met with another vital resistance at ₹550 in early March 2018 and resumed its downtrend. Since then, it has been in a medium-term downtrend. Last week, the stock breached a key support at ₹430 by tumbling 8 per cent with good volume. Both the daily and weekly indicators feature in the negative territory, backing the downtrend. The stock hovers well below its 50 and 200-day moving averages. However, it trades just above a key long-term support band between ₹380 and ₹400. Next key long-term support is placed at ₹350. The stock can find support either at ₹380 or ₹350 levels and reverse higher in the medium term. You can consider averaging at lower levels with a fixed long-term stop-loss at ₹335 levels. On the other hand, the key resistances are placed at ₹450 and ₹500.

To alter the medium-term downtrend, the stock needs to move beyond the key resistance at ₹500. Such an upmove can take the stock higher to ₹550. Strong breakthrough of the medium-term resistance at ₹550 will change the intermediate-term downtrend and push the stock northwards to ₹600 and ₹650 in the long run.

Bhushan Steel (₹24.8): The stock is in a downtrend across all-time frames — short, medium and long-term. It trades at multi-year low. and hovers at the oversold level. If you are a high-risk investor with a long-term view, consider averaging the stock at lower levels with a stop-loss at ₹20 and exit the stock in rallies. It can face key resistances at ₹35 and ₹45 in corrective rally.

Only a strong rally beyond ₹55 is needed to alter the medium-term downtrend and take the stock higher to ₹62 and ₹68 levels. To alter the intermediate-term downtrend, the stock needs to break above the significant resistance at ₹75. Such a breakthrough can take the stock higher to ₹87 and ₹100 in the long run. That said, a slump below ₹20 can drag the stock down to ₹15 or even to ₹10. In that scenario, exit the stock.

Karan Sood

Radico Khaitan (₹390.8): The stock of Radico Khaitan fell 8 per cent last week, breaching a key support at ₹413. Weekly indicators are showing signs of weakness and the stock can extend its down-move. Hence, consider booking profit at this point. A decisive fall below the immediate key support level of ₹350 can drag the stock down to ₹300 in the medium term. Further fall below₹300 will mar the intermediate-term uptrend and pull the stock down to ₹260 in the long term. Resistances are at ₹43 and ₹440.

Yash Papers (₹82.9): The stock is in an uptrend across all time-frames. But after registering a new high at ₹95 in late April this year, the stock began the decline. Now, it is poised above a key support at ₹80.

A strong plunge below this level can drag the stock down to ₹70 and then to ₹63 levels in the short to medium term. Take profits off the table at this juncture and re-enter at lower levels with a stop-loss at ₹60. Key resistances are at ₹86 and ₹95 levels.

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