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Here are answers to readers’ queries on the performance of their stock holdings.
I am a long-term investor, sitting on some profits from HDFC. Should I book some more profit now or buy on declines?
Sudhin Bathija
HFDC (₹1,271.5): The stock of HDFC has tumbled more than 8 per cent, conclusively breaking through a key support and a 38.2 per cent Fibonacci retracement level at ₹1,300 last week. Moreover, this fall has breached the intermediate-term up trend-line at around ₹1,330 and reinforced the bearish momentum. Since encountering a key resistance at around ₹1,400, the stock has been on a short-term downtrend. It trades well below it 21 and 50-day moving averages. It has a significant long-term support in the band between ₹1,230 and ₹1,250.
An emphatic breakthrough of this base zone will mar the intermediate-term uptrend and pull the stock down to ₹1,200 and then to ₹1,150 levels in the medium term. Next key supports are placed at ₹1,100 and ₹1,080 levels. Having said that, an upward reversal from ₹1,230 levels can take the stock higher to ₹1,300 levels. Strong rally beyond ₹1,300 and ₹1,350 is needed to alter the short-term downtrend and take the stock higher to ₹1,400 and ₹1,450 levels in the medium term.
You can wait for an upward reversal from ₹1,230 and then consider accumulating at a lower level with a stop-loss at ₹1,080 levels.
Can I accumulate the stock of Lovable Lingerie at this level?
E. Murali
Lovable Lingerie (₹252.3): The stock of Lovable Lingerie encountered key resistance at ₹300 in late October and started to decline. Over the last two weeks, the stock has tumbled 15 per cent, witnessing selling pressure.
It currently tests a key support as well as the 200-day moving average at around ₹250. A decisive slump below this level can strengthen the downtrend and pull the stock down to ₹235 and then to ₹215 in the medium term.
Desist accumulating the stock at the current level. Wait for the downtrend to come to an end at either ₹235 or ₹215 level and accumulate at lower levels with a stop-loss at ₹205.
On the upside, the stock needs to conclusively break through the key resistance at ₹280 to alter the short-term downtrend. Next resistances are placed at ₹300 and ₹335. Strong rally beyond ₹335 is required to alter the long-term downtrend and take the stock northwards to ₹360 and ₹400 levels in the long run.
Send your queries to techtrail@thehindu.co.in
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