Your Stock Portfolio. Mahindra Holidays takes a break

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

I have bought Mahindra Holidays & Resorts India at ₹400. Should I hold or sell?

Venkata

Mahindra Holidays & Resorts India (₹343): After registering a new high of ₹469 in July 2017, the stock started to decline. Since then, the stock has been in a medium-term downtrend. However, significant long-term support as well as 50 per cent fibonacci retracement level in the band between ₹310 and ₹325 halted the stock’s decline in mid-November.

The stock has been moving sideways since then. The long-term trend has been up for the stock since taking support from a long-term base at around ₹155 in June 2015.

This uptrend will remain in place as long as the stock trades above ₹300. Investors with a long-term perspective can stay invested with a stop-loss at ₹290 levels.

A decisive breakthrough of the key medium-term resistance level at ₹390 can strengthen the uptrend and push the stock higher to ₹430 and ₹460 levels in the long run.

Having said that, if the stock conclusively breaches the key supports at ₹325 and ₹300 it can experience selling pressure and pull the stock down to ₹275 and ₹260 levels in the medium term. A strong rally above ₹390 will also alter the stock’s medium-term downtrend and take it higher to ₹410 and ₹430 levels. Key immediate resistances are at ₹350 and ₹370 levels. You can average the stock in dips with a stop-loss at ₹290.

Can you given me the technical view on the stock of Jain Irrigation System, purchased at ₹67.

Rupesh Shingavi, G Jayarami reddy

Jain Irrigation Systems (₹118.2): The stock has been trending up, since taking support at ₹47 in February 2016. Significant support at ₹93 has been consistently providing base for the stock since this August. In mid-October, the stock tested this support and resumed its uptrend. Since then, the stock has been in a medium-term uptrend. While trending up, it has emphatically breached a key medium-term resistance poised at ₹110 in late November. Moreover, the stock trades well above its 50 and 200-day moving averages.

As long as the stock trades above the key support level of ₹85, the intermediate-term uptrend that started in early 2016 will remain in place. Investors with a long-term perspective can hold the stock with a stop-loss at ₹83.

A strong break above the key resistance in the ₹125 and ₹130 can push the stock higher to ₹150 and then to ₹170 in the long term. On the other hand, a fall below the immediate support level of ₹110 can pull stock down to the sideways consolidation phase in the wide range between ₹93 and ₹110. Next supports below ₹110 are pegged at ₹100 and ₹93.

Plunge below the lower boundary of the sideways range at ₹93 can pull the stock down to ₹85. You can consider booking partial profits if the stock faces difficulty in surpassing the key resistance at ₹130 and hold with a stop-loss at ₹83.

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