Here are answers to readers’ queries on the performance of their stock holdings.
I am holding the stocks of Century Plyboards (India) purchased at ₹162 and Murudeshwar Ceramics ₹38. Can I hold or book profit?
Rakesh Kabra
Century Plyboards India (₹306.8): The stock is on an uptrend across all time-frames — long, medium and short-term. Since taking support at around ₹155 in December 2016, it has been on a medium-term uptrend.
After two months of sideways consolidation at around ₹260, the stock emphatically breached it in early June. With this rally, the short-term trend has turned bullish. However, the stock now tests a key resistance at around ₹310. The daily and weekly indicators are showing signs of weakness. Book partial profits at this juncture if the stock fails break above₹310.
A sideways movement or a corrective decline to ₹280 or even ₹270 is possible. Thus, make use of the corrective decline to accumulate with a stop-loss at ₹230. Key supports below ₹270 are placed at ₹260 and ₹240. Resumption of the uptrend can take the stock higher to ₹330 and ₹340 in the medium term.
Murudeshwar Ceramics (₹44.6): The stock of Murudeshwar Ceramics has been on an intermediate-term uptrend from its November 2016 low of ₹23.4. The stock encountered resistance at ₹50 in April and the subsequent corrective fall took support from the up trend-line. The stock has surged 13 per cent with good volume last week. Short-term outlook is bullish for the stock. It can extend its uptrend and test resistance at ₹50 in the ensuing weeks. You can consider booking partial profits at that juncture and stay invested with a stop-loss at ₹33.
Further rally beyond ₹50 can push the stock higher to ₹60 and ₹65 levels in the long run. Downward reversal from ₹50 can keep the stock in a sideways consolidation phase in the band between ₹35 and ₹50. Immediate supports are placed at ₹40 and ₹35.
I bought RCF at ₹62. Should I sell, hold or buy?
Shubhojit
Rashtriya Chemicals and Fertilizers (₹85.2): In March this year, the stock decisively breached above a significant long-term resistance level of ₹70 and continued its intermediate-term uptrend.
Nevertheless, it met with a key psychological resistance at ₹100 in early May and reversed direction. Since then, the stock has been on a short-term downtrend.
You can consider booking profit at this juncture as the stock's uptrend is weakening. A fall below the immediate support at ₹85 can pull the stock down to ₹75. Further slump below ₹75 will reinforce the downtrend and drag the stock down to ₹65 or even ₹55 levels in the medium term. Conclusive rally beyond ₹90 and ₹100 levels are required to strengthen the uptrend and take the stock higher to ₹110 and ₹120 in the medium term.
I have bought MT Educare at ₹125. Kindly indicate the support and resistance levels respectively. Should I hold or exit?
TVS Prakash Rao
MT Educare (₹64.7): In February, the stock of MT Educare nosedived sharply, breaking below the key long-term support level of ₹100. However, it found support in the band between ₹59 and ₹61 in late May and is trying to reverse higher triggered by positive divergence in the daily indicators.
A strong break above the immediate resistance at ₹70 can take it higher to ₹80 and ₹95. The next key resistance is at ₹100. Average the stock on a strong rally above ₹70 with a stop-loss at ₹58. Exit in rallies at ₹85 or ₹100. Envisaging a move above ₹100 is difficult at this juncture as the level of ₹100 is a significant long-term hurdle. A decisive slump below ₹59 can pull the stock to new lows.
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