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Engineers India: A rising star
Here are answers to readers’ queries on the performance of their stock holdings.
I am a long-term investor in Engineers India and Bank of India. I want to add more shares at these levels. Please discuss medium to long-term technicals.
Raajesh Reddy
Engineers India (₹214.1): Following a sharp plunge from the key resistance level of ₹245, the stock recorded a 52-week low at ₹157 in late August and found support. Subsequently, the stock changed direction and has been in a medium-term uptrend. Last week, the stock zoomed more than 11 per cent with good volume.
The short-term trend is also up now. Moreover, the stock has breached its 50 and 200-day moving averages in this rally.
Investors with a long-term perspective can buy the stock on declines while maintaining a stop-loss at ₹170.
Strong rally above ₹225 can encounter resistance at ₹245. The stock needs to conclusively breach the long-term resistance in the band between ₹245 and ₹250 to alter the intermediate-term downtrend and take it northwards to ₹280 levels. Significant supports are placed at ₹200 and ₹180.
Bank of India (₹129.6): The stock of Bank of India has been on a long-term downtrend from its all-time high of ₹588 recorded in late 2010. Medium as well as short-term trends are also down.
However, the stock currently tests its long-term key support band between ₹125 and ₹130 from which it had reversed higher in August 2013.
An upward reversal from this support band can take the stock higher to ₹150 and then to ₹170 levels in the medium term.
A strong rally above ₹170 will encounter resistance in the band between ₹200 and ₹210. To alter the long-term downtrend, the stock needs to decisively move above ₹350 levels, for an up move to ₹400 or ₹450 levels.
An emphatic fall below the current support band between ₹125 and ₹130 will pave the way for a decline to ₹100 and then to ₹90 in the long run.
Investors with a long-term perspective can accumulate the stock on declines with a stop-loss at ₹120.
I would like to buy D-Link India stock from short to medium-term perspective. Is the current level a good entry point?
Sabera Begum
D-Link India (₹156.5): After an intermediate-term downtrend from the July peak of ₹251, the stock currently tests a key support at around ₹150. Indicators in the daily chart suggest that an upward reversal is on the cards. But a clear rally above the immediate resistance level of ₹170 is needed for confirmation.
A strong fall below the current support can pull the stock down to ₹120 which is the next key base level.
You can wait for some time and buy at lower levels with a stop-loss at ₹110 .
On the upside, a strong rally above ₹170 will take the stock northwards to ₹190 and then to ₹210 levels. Subsequent resistances are at ₹230 and ₹250.
Send your queries to techtrail@thehindu.co.in
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