Tech Query. Can Vinati Organics make new highs?

I am holding shares of Vinati Organics. My average purchase price is ₹1,500. What is the long-term outlook for this stock?

Tarun Jain

Vinati Organics (₹2,009.35): Structurally, this stock has been on an uptrend since 2014. Within this uptrend, it has been broadly consolidating between ₹1,750 and ₹2,200 for almost a year now. The bias is bullish. The long-term uptrend is likely to remain intact. Strong support is in the ₹1,800-1,750 region.  Lock in some profit by keeping a stop-loss at ₹1,710 and hold the stock. Key resistances are at ₹2,200 and ₹2,400.

The stock has to break above ₹2,400 to move up towards ₹2,800. This might take some time. The current broad sideways consolidation can continue some more months. So, you need to wait patiently. Move the stop-loss up to ₹2,380 as soon as the stock moves up to ₹2,630. Move the stop-loss further up to ₹2,610 as soon as the stock touches ₹2,710. Exit the stock at ₹2,780.

I bought Rallis India at ₹262 last year in June. What is the outlook for this stock?

Sabera Begum

Rallis India (₹195.75): The stock has been in a downtrend since July last year. It made a high of ₹362 in June last year and has been coming down consistently. The downtrend is intact. There is room for the stock to fall further towards ₹160-150 in the next two-three months. The 200-month moving average is also poised at ₹152. As such, a fall below ₹150 will be difficult. The chances are high for the current downtrend to find a bottom anywhere in the ₹160-150 zone. A fresh rally thereafter may have the potential to take the stock up to ₹380 over the next one-two years.

Assuming that you are a long-term investor, accumulate this stock at ₹165. Keep a stop-loss at ₹135. Move the stop-loss up to ₹220 as soon as the stock goes up to ₹280. Move the stop-loss further up to ₹310 when the stock touches ₹360 on the upside. Exit the stock at ₹380.

What is the technical outlook for the stock of Hindustan Aeronautics?

Satyanarayana G S

Hindustan Aeronautics (₹1,741.05): The stock has been in a strong uptrend since May 2020. Within this uptrend, it is now undergoing a correction. The stock made a high of ₹1,970 in June and has been coming down. There is room for a fall to ₹1,640-1,620 by this month itself or in August. If the stock manages to bounce from the ₹1,640-1,620 region, then it has to rise past ₹1,800 to indicate the resumption of the uptrend. In that case, the stock can rally to ₹2,100 by this year-end or in the first quarter of 2023.

On the other hand, if the stock breaks below ₹1,620, it can see a steeper fall to ₹1,500 and even ₹1,400. Thereafter a fresh rise can happen, targeting ₹2,300 or higher levels in 2023. Assuming that the stock can see a steeper fall to ₹1,500-1,400, investors with a long-term perspective can buy about 20 per cent of the intended amount at ₹1,660. Buy another 60 per cent at ₹1,530 and the balance 20 per cent at ₹1,460. Keep a stop-loss at ₹1,380 and hold the stock. Move the stop-loss up to ₹1,650 as soon as the stock moves up to ₹1,950. Move the stop-loss further up to ₹2,050 as soon as the stock touches ₹2,200 on the upside. Book profits at ₹2,300.

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