Comments
Here are answers to readers’ queries on the performance of their stock holdings.
What are the future prospects for Oil India and Grasim. I would like to buy these stocks.
Vasanthalakshmi Pai
Oil India (₹494.7): After encountering a key resistance at ₹650 in September 2014, the stock changed direction. Since then, it has been on an intermediate-term downtrend. The short-term trend is also down.
While trending down, the stock decisively broke through a key support at ₹550 this January. It now tets a key support band between ₹490 and ₹500.
Indicators and oscillators in both the daily and weekly charts indicate bearishness. An emphatic fall can drag the stock down to the next significant long-term support in the band between ₹440 and ₹450.
Hence, investors looking for a long-term buy can wait and buy at the long-term support band with a stop-loss at ₹425. An upward reversal can take the stock higher to ₹550.
If it breaks past this level, it will alter the downtrend and the stock can rise to ₹570, ₹600 and then to ₹650 in the long term.
Grasim Industries (₹3,761): The stock is in an uptrend across all time-frames. However, one leg of the uptrend that started from the September 2013 low of ₹2,121 appears to have come to a halt after encountering resistance around ₹3,900 in late January this year.
This resistance has kept the stock on hold for the past four weeks. It is moving sideways with a negative bias. A strong fall below the immediate support of ₹3,650 will mar the short-term uptrend and pull the stock down to ₹3,400 or ₹3,300 level in the medium term.
The stock has a significant long-term support in the range between ₹3,200 and ₹3,300. Investors can consider buying the stock at this level with a stop-loss at ₹3,150 levels.
As long as the stock trades above ₹3,000, its long-term uptrend will remain in place. Key supports below this level are at ₹2,800 and ₹2,500.
An emphatic break above ₹3,900 can take the stock higher to ₹4,000 and then to ₹4,200 in the long run.
Could you give your medium and long-term outlook on GMR Infra and GVK Power?
Pramod D’SilvaGMR Infrastructure (₹18.5): The stock is in a downtrend across all time frames. It has been testing a significant long-term support in the band between ₹16.5 and ₹17.5 since mid-December 2014. A downward breakout of this base zone can strengthen the downtrend and drag the stock down to ₹10.6 in the medium term.
On the other hand, the stock needs to decisively rally above ₹26 to alter the intermediate-term downtrend and take it higher to ₹32 and ₹38 levels in the long term. However, key immediate resistances are pegged at ₹20 and ₹23.
GVK Power & Infrastructure (₹10.1): This stock is also on a downtrend across all time frames. It is currently testing a key support between the ₹9 and ₹9.5 band.
A conclusive fall below this support will have bearish implications and pull the stock down to ₹7.3 and ₹5.5 in the medium- to-long term.
The stock needs to breach important resistances at ₹12.5 and then ₹16 to alter its short and medium-term downtrends respectively.
Next key long-term resistances to watch are at ₹21 and ₹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.