Your Stock Portfolio. Cox & Kings is going places

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

I have bought the stock of Cox & Kings at ₹270. Kindly advise.

TVS Prakash Rao

Cox & Kings (₹270): The stock of Cox & Kings found support at ₹200 in September 2015, following an intermediate-term downtrend.

Subsequently, the stock changed direction, triggered by positive divergence in the daily relative strength index and price rate of change indicator.

Since then, the stock has been on a short-term uptrend, surpassing a key resistance at ₹225 levels. Last week, the stock jumped 12.6 per cent showing signs of bullishness.

However, the stock is now testing another key resistance band between ₹270 and ₹280.

As your investment has broken even, you can consider holding it with a stop-loss at ₹235 if you are a medium-term investor. For a long-term perspective, the stop-loss can be placed at ₹200. An emphatic breakthrough of the current resistance band can extend the stock’s uptrend to ₹310 and ₹330 levels in the medium term. Next resistances are placed at ₹350 and ₹366 levels, which are long-term targets.

On the other hand, a conclusive fall below ₹200 will mar the uptrend and drag the stock down to ₹155 or even ₹125 in the long run. So investors should desist taking fresh positions below ₹200 levels.

What is the future prospect of Talbros Automotive Components?

Shri Ram

Talbros Automotive Components (₹118.1): After encountering a key resistance at around ₹130 in mid-October, the stock of Talbros Automotive Components started to decline.

Last week, the stock fell 5.4 per cent, conclusively breaching its 200-day moving average. It currently hovers well below the long-term average line and appears to have resumed its medium-term downtrend that has been in place from the July 2015 peak of ₹170.

The stock has an immediate support at ₹114. A strong fall below this level will drag it down to ₹100 in the short term. Further fall below ₹100 will signify that the stock is entering a bear phase and can decline to even ₹90 over the long term.

Therefore, traders should avoid taking fresh position below ₹100. Conversely, a decisive break out of the immediate resistance level of ₹130 can bring back bullish momentum and push the stock higher to ₹145 in the medium term.

Next significant resistances are pegged at the levels of ₹155 and ₹170.

Can you advise on the short and long-term prospects for the stock of Pioneer Embroiderers?

Venkatraman A

Pioneer Embroiderers (₹39.1): The stock of Pioneer Embroiderers moved out of a key resistance at ₹10 in May 2014 and continued to trend upwards. It is a volatile stock moving from one circuit to another.

Since last November, there has been an increase in volume, indicating pick up in trading interest. However, the stock is not completely out of woods. Hence, exiting the stock and investing in a blue-chip company is advisable.

The stock has been in a sideways consolidation phase since April 2015, in the broad range between ₹28 and ₹45. It is now testing the upper boundary. A strong breakthrough of ₹45 will be positive and take the stock northwards to ₹50 and then to ₹60 levels.

However, a fall below the lower boundary will result in a downtrend and drag the stock down to ₹20 and then to ₹15 in the medium term.

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