What is the short-term outlook for Divi’s Laboratories? I would like to buy for a short-term horizon.
Ashish Pathrabe
Further, the monthly RSI is featuring in the overbought territory, implying that corrective decline is likely. An emphatic fall below the key support level of ₹3,600 will mar the short-term uptrend, bring back selling interest and drag the stock down to ₹3,350 levels. Next key supports below ₹3,350 are placed at ₹3,200 and ₹3,000. A conclusive plunge below ₹3,000 will alter the medium-term uptrend that commenced from last July low of ₹2,094 levels.
The long-term uptrend will remain intact as long as the stock trades above the significant support level of ₹1,600. Investors with a long-term perspective can stay invested with a stop-loss at ₹1,570. Key supports below ₹2,800 are placed at ₹2,400 and ₹2,200 levels. On the upside, a conclusive break above the immediate resistance level of ₹4,000 will reinforce the uptrend and take the stock northwards to ₹4,200 and then to ₹4,400. The short-term outlook is negatively biased, so you can wait and buy at lower levels after a corrective decline.
How will the stock of Sundram Fasteners perform in the next 12 months?
Santosh
Sundram Fasteners (₹522.9) : The stock has been on an intermediate-term uptrend since it took support in March last year at ₹249 levels. After a corrective decline, it took support at ₹400 in the months of September and October 2020 and continued to trend upwards. However, the stock began to decline recently after registering a 52-week high at ₹585 on December 18, 2020. Significant long-term resistance in the band between ₹585 and ₹600 could limit the upside temporarily. A conclusive fall below the immediate base level of ₹500 will weaken the short-term uptrend and drag the stock down to ₹470 and then to ₹440. A further plunge below the second base level of ₹400 can pull the stock down to ₹400, which is a crucial long-term base to note. The intermediate-term uptrend will remain in place as long as the stock trades above ₹400. Key supports below ₹400 are placed at ₹330 and ₹300. On the other hand, a conclusive breakthrough of ₹600 is needed to take the stock higher to ₹700 and then to ₹750 over the long term. Investors with a long-term horizon can remain invested with a stop-loss at ₹380.