Here are answers to readers’ queries on the performance of their stock holdings.
I am holding shares of Hindalco at ₹140 per share. What is the outlook for the stock.
The indicators in the daily and weekly charts are showing signs of strength. Nevertheless, the stock faces a key long-term resistance in the range between ₹87 and ₹90.
A strong breakthrough of this hurdle will alter the short-term downtrend and take the stock higher to ₹100 and then to ₹110 in the short to medium term.
You can consider averaging the stock in dips while maintaining a stop-loss at ₹67. Next resistance above ₹110 is at ₹125, which is a significant medium-term resistance.
Strong breakthrough of this level is needed for further rally to ₹140 levels. On the other hand, the stock’s decline can find supports at ₹78 and ₹67-70 band.
Only a conclusive fall below ₹67 will be a threat which can extend the long-term downtrend to ₹60 or even ₹50.
What is the outlook for Granules India and Alembic?
Loganayahi K
Granules India (₹162.4): In July 2015, the stock of Granules India broke out of a key resistance at ₹100 and continued its uptrend. With some volatility, the stock accelerated to new highs.
On Friday, the stock climbed 4.7 per cent and registered a new high at ₹163.5. With this rally, the indicators in the daily and weekly charts have entered overbought levels.
Also, the indicators in the monthly chart are in the overbought territory, indicating a trend reversal possibility. Therefore, investors sitting on reasonable profits can consider taking them off the table and re-entering at lower levels.
A trend reversal can pull the stock down to its key support levels at ₹140 and ₹130. Subsequent supports below ₹130 are at ₹120 and ₹110. Investors with a long-term perspective can hold the stock while maintaining a stop-loss at ₹95 levels.
Alembic (₹42.6): Since registering an all-time high of ₹69.5 in September 2014, the stock has been on an intermediate-term downtrend.
The significant resistance at ₹53 kept the stock under check in July 2015. The stock has been on a medium-term downtrend since then.
A conclusive breakthrough of the immediate resistance at ₹45 can alter this downtrend and take the stock northwards to ₹53. But to alter the intermediate-term downtrend, the stock needs to emphatically breach the level of ₹53 for an upmove to ₹60 or even ₹65 in the long run. Investors with a long-term horizon can stay invested with a stop-loss at ₹35.
A decisive fall below the immediate base level of ₹38 can drag the stock down to ₹30 in the medium term.
Send your queries to techtrail@thehindu.co.in