Comments
Here are answers to readers’ queries on the performance of their stock holdings.
I bought shares of Lupin at ₹1,527 and JP Associates at ₹246. Should I hold or sell these stocks?
Mahalakshmi. C; V K Divya
Lupin (₹814.1): The stock of Lupin has been in a long-term downtrend since recording a new high at ₹2,127 in October 2015, forming lower peaks and troughs. In November 2017, it nose-dived, breaching a key support at ₹1,000 and its 200-day moving average, decisively. Both the medium and short-term trends are down for the stock. However, it tests a key long-term support in the ₹800-850 band now and moves sideways. Next supports are at ₹750 and ₹730, which can limit the downside in the ensuing weeks.
Next key support is at ₹700. Investors with a long-term perspective can buy the stock in declines with a stop-loss at ₹690 levels. You can consider averaging the stock in declines with a stop-loss at ₹690 levels.
The daily and weekly indicators show signs of positive divergence, implying possibility of trend reversal.
An upward reversal from the key supports can take the stock higher to ₹900 initially. Further rally beyond ₹900 can push the stock to ₹1,000. To alter the medium-term downtrend, the stock needs to decisively rally above ₹1000. Next targets are ₹1,100 and ₹1,200 levels.
Jaiprakash Associates (₹17.7): The stock Jaiprakash Associates fell 6.3 per cent last week, witnessing selling pressure. Since encountering a significant resistance at around 30 this July, the stock has been in an intermediate-term downtrend. However, finding support at around ₹17, it has been trying to move sideways over the past two months in the band between ₹17 and ₹21. Breaching the 21 and 50-day moving averages last week, the stock is on the brink of testing the lower boundary of the sideways range. The short-term outlook is negatively biased. A strong tumble below ₹17 can pull the stock down to ₹15.5 and then to ₹14 in the medium term. Crucial resistances are pegged at ₹20 and ₹21. A decisive rally beyond ₹21 is needed to bring back positive momentum and take the stock higher to ₹23 and ₹25 levels in the medium term.
I bought Bedmutha Industries at ₹37. Should I buy or sell the stock?
D B Ramachandra
Bedmutha Industries (₹28.1): Since taking support at ₹21.7 in October this year, the stock has been in a corrective up-move. It now faces a vital resistance ahead at ₹30. A decisive break above this hurdle can push the stock higher to ₹33 and ₹36 levels in the short term. But failure to move beyond ₹30 and pull the stock down to ₹25 and then to ₹21.5 or ₹20 levels in the same time period. Consider exiting the stock in rallies with a stop-loss at ₹25.
Send your queries to techtrail@thehindu.co.in
Comments
COMMENT NOW
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.