Comments
Here are answers to readers’ queries on the performance of their stock holdings.
What are the medium-term prospects for EID Parry?
Laxmanan REID Parry India (₹319.4): The stock of EID Parry India has been on a long-term uptrend, forming higher peaks and troughs, since taking support at ₹123 in September 2015. In April 2017, the stock emphatically breached key resistance at ₹300 and extended its uptrend. However, it encountered a significant resistance at around ₹350 in early May and started to decline.
Since then, the stock has been on a sideways consolidation phase in the range between ₹300 and ₹350. Last week, it tested the upper boundary level of ₹350 and began to decline. On Friday, the stock fell 3 per cent, breaching an immediate support at ₹325 levels. The indicators in the daily as well as weekly chart have started showing signs of weakness and are moving downwards. The stock could remain sideways in the band between ₹300 and ₹350 in the short to medium term.
Investors sitting on good gains can consider taking partial profits off the table at this juncture as the broader markets are also turning volatile. An emphatic downward break of ₹300 can pull the stock down to ₹275 and then to ₹260 in the medium to long term.
Next significant supports are placed at ₹250 and ₹235 levels. The long-term uptrend will remain in place as long as the stock trades above the key support level of ₹235. Investors with a long-term perspective can hold the stock with a stop-loss at ₹225.
A strong rally above the immediate resistance level of ₹325 can take the stock higher to ₹340 and ₹350 levels in the near term.
To strengthen the uptrend, the stock needs to decisively break above the key barrier at ₹350 levels. In that case, the stock can continue its uptrend and reach the medium-term targets of ₹370 and ₹390.
Can I buy GMR Infrastructure at the current level? What is the outlook for the stock?
Ronak Mayani
GMR Infrastructure (₹17.6): In June, the stock of GMR Infrastructure was in the limelight as it gained 30 per cent and attracted trader’s attention.
However, it encountered key resistance in the band between ₹21 and ₹22 in late June and began to decline. Since then, it has been on a short-term downtrend.
Last week, the stock plunged more than 6 per cent and tests a key support at around ₹18 now. Further fall below this base can pull the stock down to ₹17 and then to ₹15 in the medium term. An emphatic downward break of ₹15 will alter the stock's intermediate-term uptrend and pull it down to ₹14 or even ₹13 in the long term.
Key resistances are at ₹19 and ₹20. Strong rally above ₹20 can test resistance in the ₹21-₹22 band. As the stock is very volatile and investment for the medium-to long term is not advisable, stay away from the stock. Those who hold the stock can stay invested with a fixed stop-loss at the level of ₹15.
Send your queries to techtrail@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.