What is the outlook for the stock of Indian Energy Exchange (IEX)? Can I accumulate at current levels?
Krishnan
Indian Energy Exchange (₹153.70): The stock has been in a downtrend since January last year. Within this downtrend, the stock has been consolidating sideways for a prolonged period. The range of trade has been ₹125 to ₹160 since October last year. On the charts, this signals a strong base formation. The 200-Week Moving Average (MA) support is also at ₹122. Intermediate support within the range is at ₹143. Resistance is in the ₹180-185 region. This can be tested in the next two-three months. A strong break above ₹185 will boost the bullish momentum.
Such a break will take the IEX share price up to ₹250 over the long term. You have not mentioned your buy price. However, you can consider accumulating at current levels and follow the given strategy. Investors who want to buy this stock afresh can also enter at current levels. Accumulate on dips at ₹135. Keep a stop-loss at ₹105. Move the stop-loss up to ₹155 as soon as the stock touches ₹180. Move the stop-loss further up to ₹185 when the IEX stock price moves up to ₹220. Exit the shares at ₹245.
I have purchased Biocon stocks around ₹220. What is the one-two year outlook for this stock?
Himanshu
Biocon (₹228.70): The trend has been down since January 2021. The downtrend is still intact. There is no sign of a reversal yet. So, the recent bounce could be a correction and can be short-lived. Resistance is at ₹255. It can cap the upside. As long as Biocon stays below ₹255, there is room on the downside to test ₹170-165. The region between ₹165 and ₹145 is a long-term support zone. The stock can find a bottom anywhere here. A fresh leg of rally thereafter can target ₹280-300 on the upside.
This can test your patience and will be time consuming. Considering the risk-reward, it will not be worth the wait. So, we suggest you exit Biocon. You can consider reinvesting the money in the shares of Indian Energy Exchange (IEX), which is looking good on the charts for the same time frame of one-two years that you have mentioned. Follow the strategy explained in the query above.
What is the outlook for the stock of Caplin Point Laboratories? I have bought this stock at ₹498 and can hold it for long term. Should I continue holding the stock or exit?
Saranya Gosh Sinha
Caplin Point Laboratories (₹669.30): The trend has been down since mid-September 2021. However, there are strong supports at ₹580 and ₹510. The first support at ₹580 has been holding well for now. Resistance is in the broad ₹750-800 region. A strong break above ₹800 can take the Caplin Point Laboratories’ share price up to ₹950-1,000 in the second quarter next year.
It is important for you to protect some of your profits. Keep a stop-loss at ₹560 for 20 per cent of your holding. For the balance 80 per cent, keep a stop-loss at ₹495. Revise the stop-loss up to ₹720 for your entire holding when the price moves up to ₹820. Move the stop-loss further up to ₹850 when the stock price touches ₹930. Exit the stock at ₹980. You can even consider buying more at ₹620 if a dip happens before breaking above ₹800.
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