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

What is the short term outlook for NTPC?

Roshan Mayani

NTPC (₹167.7): Ever since recording a multi-year low of ₹107.2 in August 2015, the stock of NTPC has been on an intermediate-term uptrend. Medium-term uptrend is also up for the stock. However, it encountered a key long-term resistance in the ₹175-178 range in January 2017 and started to decline. The stock took support at ₹155 in early March and is on the rise again.

But the stock now tests an immediate resistance at around ₹168. Strong rally above this level can alter the short-term trend upwards and take the stock higher to ₹175 or ₹178 levels. A conclusive break above ₹178 is required to alter the stock's long-term downtrend and take it northwards to ₹190 and then to ₹200 in the medium term.

Further rally beyond ₹200 can push the stock higher to ₹220 and then to ₹240 in the long run. Investors with a long-term horizon can hold the stock with a stop-loss at ₹140 levels.

If the stock fails to move beyond ₹178 levels, it can witness a sideways movement in the ₹155-178 band for a while. Nevertheless, a slump below ₹155 will bring back selling pressure and drag it down to ₹145. The intermediate-term uptrend will be mitigated only if it falls below ₹145 levels.

Can I buy the stock of Balmer Lawrie Investments at the current levels? What are its prospects for the long term?

Sreedevi

Balmer Lawrie Investments (₹395.7): The stock of Balmer Lawrie Investments is in an uptrend across all-time frames — long, medium and short-term. After recording a new high of ₹428 in this January, the stock began to witness selling pressure and fell.

However, it found support at ₹370 recently and resumed its uptrend by gaining 3.8 per cent last week. As long as the stock trades above the key long-term support level of ₹250, the long-term uptrend will remain intact. Investors with a long-term perspective can buy the stock in corrective declines while maintaining a stop-loss at ₹240 levels.

The stock’s medium-term uptrend will be place as long as the stock hovers above ₹340 levels. Medium-term perspective investors can stay invested with a stop-loss at ₹330 levels.

Immediate supports are at ₹380 and ₹370 levels. Plunge below ₹370 can alter the short-term uptrend and pull the stock down to ₹350 levels. Next key supports are at ₹330 and ₹315 levels.

I am a long-term investor and purchased shares of Clariant Chemicals at ₹710. Kindly advice?

Brij Mohan Lal

Clariant Chemicals (₹707.5): Following a strong rally in 2014, the stock of Clariant Chemicals (India) registered an all-time high of ₹1,042 in January 2015. However, the stock's key resistance in the ₹1,020-1,040 band and limited its rally in April 2015. Since then, the stock has been on an intermediate-term downtrend.

Key resistance at around ₹800 capped the upside during October 2016. Subsequent, the stock resumed its downtrend and continued to decline. Last week, it met with a resistance at ₹720 and faces difficulty in surpassing it. Strong break-out of ₹720 levels can take the stock higher to ₹740.

But to alter the medium-term downtrend, the stock needs to exceed beyond ₹740 levels. Subsequent targets are 760 and ₹800 levels. But inability to move beyond ₹720 levels can pull the stock down to ₹685 and then to ₹640 levels in the medium term. Further decline below ₹640 can test a long-term support at ₹600. You can average the stock on a fall below ₹640 levels while maintaining a stop-loss at ₹590 levels.

Send your queries to techtrail@thehindu.co.in

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