Here are answers to readers’ queries on the performance of their stock holdings.
I bought shares of Infibeam Incorporation at ₹956. Should I hold or sell the shares at the current price.
Further break-out of this hurdle is needed to strengthen the bullish momentum and push the stock higher to ₹1,300 and ₹1,400 in the medium to long-term. On the other hand, an emphatic downward break of the immediate support in the ₹915-950 will bring back selling pressure and pull the stock down to ₹850. Investors with a long-term perspective can hold the stock and accumulate on declines with a stop-loss at ₹835 levels. But a decisive downward break of ₹850 can pull the stock down to ₹800 levels.
What are the medium and long-term support and resistance levels for the stocks of MTNL, HFCL and Parenteral Drugs India.
Gautam SK
Mahanagar Telephone Nigam Ltd (₹23.9): The stock's intermediate-term uptrend that commenced from the key support level of ₹15 in November 2016, encountered resistance at ₹27 last month. Subsequently, triggered by negative divergence in the daily indicators, the stock began to decline. Last week, it plunged 8 per cent breaching the uptrend line decisively. Now, it can extend its down-move and test a long-term support in the ₹20-21.5 band. Strong fall below ₹20 can pull the stock down to 18 and then to ₹15 in the medium term. Nevertheless, resumption of the uptrend from the long-term support band between ₹20 and ₹21.5 can re-test the resistance of ₹27 in the medium term. An upward break of ₹27 can take the stock higher to ₹30 and then to ₹33 or even to ₹35 in the long run.
Himachal Futuristic Communications (₹14.5): The stock has been facing difficulty in moving above the key long-term resistance band between ₹20 and ₹22 since late 2014. To strengthen the bullish momentum, the stock needs to conclusively break above this barrier for an up-move to ₹30 and then to ₹35. Immediate resistances are at ₹16 and ₹18. Slump below the immediate base level of ₹14 can pull the stock down to ₹12.5 or ₹12 in the medium term. Further decline can drag the stock to ₹11 and ₹10.
Parenteral Drugs India (₹26.4): The stock is in a downtrend across all time frames. Since February, it has been facing difficulty in surpassing a key long-term resistance level of ₹30. An emphatic break above this level will alter the short-term trend up and take the stock higher to ₹37 and then to ₹43 in the medium term.
But inability to move beyond ₹30 will keep the stock in a sideways consolidation phase with negative bias. In that case, the stock can test supports at ₹22 and ₹19. Conclusive slump below ₹19 can pull the stock down to ₹16 or ₹15 levels.
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