Here are answers to readers’ queries on the performance of their stock holdings.
What is the short and medium term outlook for Hindalco Industries and Vedanta?
A conclusive break-out of this resistance band can take the stock higher to ₹230 and ₹250 levels in the medium to long term. But a downward break of the lower boundary of the sideways movement at ₹180 will bring back selling pressure and pull the stock down to ₹170 levels. Further fall below ₹170 will alter the stock’s medium-term uptrend and pull it down to ₹160 and ₹150 levels in the long term. Investors with a long-term perspective can stay invested with a stop-loss at ₹140 levels. Conclusive fall below the long-term support range of ₹140 and ₹150 will start threatening the uptrend and pull the stock down to ₹125 and ₹110 levels. In the short term, the stock will continue to move sideways in the ₹180 and ₹200 range.
Vedanta (₹236.4): The long-term trend is up for the stock of Vedanta. Nevertheless, the short-term trend has been down since encountering a key resistance at ₹278 in early April 2017. The stock took support at ₹220 last week and witnessed a bounce back. Continuation of the current upmove can take the stock higher to ₹245 and ₹260 levels in the short term. Having said that, a strong downward break of the immediate support level of ₹220 can pull the stock down to ₹200 in the short to medium term. As long as the stock trades above the significant long-term support band between ₹160 and ₹170, the primary uptrend will remain in place. Investors with a long-term view can hold the stock with a stop-loss placed at ₹150. Strong upward break-out of the key resistance level of ₹280 will reinforce the long-term uptrend and take the stock northwards to ₹300 and ₹320 levels in the medium term. Further rally beyond ₹320 can take the stock higher to ₹345 and ₹380 levels in the long term.
I hold Camlin Fine Sciences bought at ₹114 and Uflex ₹170 per share. Should I hold or sell it?
Karnam Prabhakar Rao
Camlin Fine Sciences (₹90.4): Since encountering a key resistance in the range between ₹118 and ₹120 in early January 2017, the stock has been on a medium-term downtrend. But a vital support at around ₹89 halted the stock’s decline in March and again in early May. The stock currently tests this support. It trades well below the 50 and 200-day moving averages. Near-term outlook is negative for the stock. An emphatic downward break of ₹89 can drag it down to ₹80 and then to ₹76 in the short term. Immediate resistances are placed at ₹95 and ₹100. Next key trend deciding resistance is placed at ₹105. Strong rally beyond this level is required to alter the stock’s medium-term downtrend and take it northwards to ₹110 and ₹120 levels. Consider selling the stock on a fall below ₹89 and re-enter at lower levels.
Uflex (₹367): The stock of Uflex in an uptrend across all-time frames –– long, medium and short-term. After a strong break-out of a key resistance level of ₹325 in late April 2017, the stock recorded a new high of ₹382.6 on May 2. It has been moving sideways with a negative bias since then. You can consider taking partial profits off the table at this juncture and hold the stock with a stop-loss at ₹315. Strong plunge below ₹320 will alter the medium term uptrend and pull the stock down to ₹300 and then to ₹280 levels. A decisive rally above ₹380 can take the stock northwards to ₹400.
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