Here are answers to readers’ queries on the performance of their stock holdings.

I hold shares of Karur Vysya Bank, bought at ₹139. What is the technical outlook?

C. S. Swaminathan

Karur Vysya Bank (123): The stock of Karur Vysya Bank has been in an intermediate-term uptrend since taking support at around ₹75 in December. However, after recording an all-time high of ₹150 in September this year, the stock changed direction and began to decline. Since then, it has been in a medium-term trend. The stock found support at ₹112 in early December, after retracing ₹50 per cent fibonacci retracement level of its prior uptrend. Testing this support for more than two weeks, the stock began to move higher, triggered by positive divergence in the daily indicators. Last week, the stock gained 7 per cent with good volume, breaching a key resistance at ₹119. The stock trades above 21 and 50-day moving averages.

Continuation of the upmove can encounter resistance at ₹130 initially and then at ₹136. To alter the medium-term downtrend, the stock needs to emphatically breach the key hurdle at ₹136 to take the stock higher to ₹140 and ₹150 once again. A further break above ₹150 can take the stock higher to ₹160 and ₹170 levels in the medium to long term. Inability to move beyond ₹136 can keep the medium-term downtrend intact and drag the stock down to ₹119 and ₹112 levels.

On the other hand, a plunge below the significant support level of ₹112 can drag the stock down to ₹108 and ₹105. In that case, the intermediate-term uptrend will be under threat and the stock can decline to ₹100 and then to ₹95. You can consider exiting some shares if the stock faces difficulty in surpassing ₹136 and re-enter at lower levels with a stop-loss at ₹110.

What are the short, medium and long-term targets for Force Motors?

Bhaskar Parab

Force Motors (₹3,588.9): In April, the stock of Force Motors encountered a key medium-term resistance at ₹4,800 and changed direction. Since then, the stock has been in an intermediate-term downtrend. While trending down, the stock breached a key support at ₹3,700 in September and extended its downtrend. But it found support at around ₹3,000 last week and reversed direction triggered by positive divergence in the daily indicator.

The stock gained almost 20 per cent with good volume, breaching its 21 and 50-day moving averages in the previous week. But the stock now tests a key resistance at ₹3,600. A decisive breakthrough of this resistance can push the stock higher to ₹3,800 and ₹4,000. To alter the intermediate-term downtrend, the stock needs to conclusively move beyond the key trend-deciding level of ₹4,150. Subsequent resistances are at ₹4,300 and ₹4,500. Key short-term supports are placed at ₹3,400, ₹3,200 and ₹3,000. An emphatic tumble below the vital support at ₹3,000 can pull the stock down to ₹2,800 and then to ₹2,600 in the medium term.

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