Here are answers to readers’ queries on the performance of their stock holdings.
What is long term support and resistance for L&T? I have shares bought at ₹1,456.
Chandrashekhar
Larsen & Toubro (₹1,478): Following a sharp decline in the second half of 2015, the stock of Larsen & Toubro found support in the band between ₹1,050 and ₹1,080 in January and February 2016. Since then, it has been on an intermediate-term uptrend. The stock retraced 50 per cent of the uptrend and found support at around ₹1,300 in November and December 2016. As long as the stock trades above ₹1,300 levels, the intermediate-term uptrend will remain in place. Investors with a long-term view can consider buying in corrective declines with a stop-loss at ₹1,250.
Key support is in the ₹1,400-1,430 band. A decisive fall below this level can pull the stock down to ₹1,300. But a strong breakthrough of the immediate resistance at ₹1,500, which the stock curently tests, can take it northwards to the next significant resistance level at ₹1,600. Further rally beyond ₹1,600 will strengthen the uptrend and take the stock higher to ₹1,750 and then to ₹1,850 in the long term. Conversely, a slump below ₹1,300 will mar the uptrend and pull the stock down to ₹1,200 and then to ₹1,100 levels.
What is the medium and short-term outlook for the Shriram City Union Finance?
Singaiah Bodduluri
Shriram City Union Finance (₹1,908.3): After recording a new high of ₹2,650 in late October 2016, the stock of Shriram City Union Finance did a volte-face triggered by negative divergence in the weekly relative strength index. In early November 2016, the stock nose-dived sharply in a short span of time and found support in the band between ₹1,750 and ₹1,800. Since then, the stock has been on a medium-term sideways movement in the ₹1,750-2,050 range with a negative bias. An emphatic downward breakthrough of ₹1,750 can reinforce the downtrend and pull the stock down to ₹1,600 and then to ₹1,400 in the medium to long term. On the other hand, an upward break-out of ₹2,050 can push the stock higher to ₹2,150 and ₹2,300.
I hold Snowman Logistics at ₹63 per share. May I know its support and resistance levels? If I have to average, what is the best price?
Rohan Angadi
Snowman Logistics (₹56.8): The stock of Snowman Logistics has been on a long-term downtrend. Nevertheless, it found support at its long-term base zone between ₹48 and ₹50 in November and again in late December 2016. Triggered by positive divergence and backed by key support zone, the stock reversed direction in December. Since then, it has been a short-term uptrend.
But the stock met with a key resistance at ₹60 and has been testing it over the past four weeks. Strong break-out of this barrier is needed to strengthen the short-term uptrend and take the stock higher to ₹65 and ₹70 levels in the coming months. However, a slump below the immediate support level of ₹55 will mar the uptrend and pull the stock down to ₹50 once again. Strong rally beyond ₹70 is required to alter the intermediate-term downtrend. For this to happen, the stock needs to move beyond key resistance level of ₹90. You can average the stock at lower levels with a long-term stop-loss at ₹46.
Send your queries to techtrail@thehindu.co.in
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.