Your Stock Portfolio. Force Motors — good for the long run

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

What are the future prospects for Savita Oil Technologies and Force Motors.

Vasanthi L Pai

Savita Oil Technologies (₹732.7): The stock met with key resistance at around ₹800 in July 2014 and began to consolidate sideways in the band between ₹650 and ₹800. The price actions in the monthly chart suggest that trend reversal is on the cards.

Failure to rally beyond ₹800 can pull the stock down to ₹650 levels in the medium term.

A downward breakthrough below ₹650 will alter the sideways trend to downwards and pull the stock lower to ₹600 and then to ₹550 in the medium term. Investors with a long-term perspective can hold the stock with a stop-loss at ₹550 levels. An upward break of ₹800 can take the stock northwards to ₹900. Conversely, a fall below ₹550 will pull the stock down to ₹480 and then to ₹380 levels.

Force Motors (₹1,168): The stock of Force Motors lost strength after encountering resistance at around ₹1,400 in October 2014. It has been on a medium-term downtrend since then. However, after finding support around ₹1,010, the stock began to move higher, but faces key resistance at ₹1,250 levels. A break of ₹1,250 will strengthen the long-term uptrend and push the stock higher to ₹1,350 and then to ₹1,400.

Investors with a long-term horizon can stay invested as long as the stock trades above the significant long-term base zone between ₹800 and ₹850. An emphatic rally above ₹1,400 can take the stock to ₹1,500 in the long run. On the other hand, a fall under ₹1,010 levels will pull the stock down to ₹900 and then to ₹850 levels.

I need your opinion on Hindustan Media Ventures.

R MaheshHindustan Media Ventures (₹212.8): After taking support at around ₹105 in November 2013, the stock started to trend northwards. Since then, it has been on a long-term uptrend. Medium-trend has been up since October 2014 low of ₹152.

The stock now tests key resistance at ₹218 levels, which is the ceiling formed in mid-November 2014. A conclusive breakthrough of this resistance can take the stock higher to ₹240 and then to ₹260 levels in the medium term.

Such a break will also give a buying opportunity for investors with a medium-term perspective, who can buy with a stop-loss at ₹205 levels.

But, a downward breach of the immediate support at ₹195 will mitigate the medium-term uptrend and pull the stock down to ₹170 or ₹160 over the medium term.

I had invested in Monsanto India at ₹720. Should I stay invested? Kindly suggest the long-term outlook.

Sandeep Dhawan

Monsanto India (₹2930): After breaking through a key long-term resistance around ₹850 in January 2014, the stock has been on a long-term uptrend.

As you are sitting on hefty gains, it is advisable to take profits off the table at this current juncture.

Moreover, the stock appears to have formed a medium-term peak at ₹3590 recorded in September 2014.

Since then, the stock has on a sideways consolidation phase in the wide range between ₹2600 and ₹3400.

A fall below the lower boundary at ₹2,600 can pull the stock down to ₹2,300 levels.

Next supports are at ₹1880 and ₹1750 levels. The stock is trending northwards now and is facing resistance at ₹3000 level.

A break out of this level could push the stock to test the upper boundary at ₹3400 in the medium-term. Subsequent resistance is at ₹3600 levels.

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