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

I have shares of ICICI Prudential allotted in the IPO at ₹334. Should I hold or sell?

Rakesh

ICICI Prudential Life Insurance Company (₹358.5): With the limited history available for the stock of ICICI Prudential Life Insurance Company, the medium-term outlook is bullish. After listing in late September 2016, the stock encountered resistance at ₹330 in October.

However, it subsequently declined and found support in the band between ₹273 and ₹283 in late November. Since then, the stock has been on a medium-term uptrend. It decisively breached its 21 and 50-day moving averages in early January and trades well above them.

Last week, the stock conclusively broke the key resistance at ₹330 by gaining 8 per cent accompanied with good volume. Investors with a long-term perspective can consider holding the stock with a stop-loss at ₹295. Currently, the stock tests a resistance at ₹360.

Conclusive breakthrough of this level can take the stock to new highs. Next key psychological resistance is at ₹400. Investors with a medium-term horizon can hold the stock with a stop-loss at ₹325.

An emphatic downward breakthrough of ₹330 will be a threat to the stock's medium-term uptrend. This can pull the stock down to its support band between ₹315 and ₹300. Significant support below ₹300 is in the ₹273-₹283 range.

What are the near-term supports and resistances for Delta Corp and Marksans Pharma?

Kottaisamy T

Delat Corp (₹125.1): After recording a new high at ₹195 in late October, the stock changed direction triggered by negative divergence in the weekly relative strength index.

In first two week of November, it nose-dived 43 per cent breaking a key long-term support at around ₹140. But the stock found support at the next key support level of ₹100 in late November and December and started to move up. The significant support at ₹140 has turned into a key resistance and has halted the stock’s rally. Last week, it fell 6.7 per cent.

Strong break-out of ₹140 is required to take the stock northwards to ₹160 and then to ₹185 in the long term. Immediate supports are at ₹115, ₹100 and ₹90. Decisive plunge below ₹90 can pull the stock down to ₹75 and ₹65 levels.

Marksans Pharma (₹39.3): Following a sharp plunge in January 2016, the stock found support in the range between ₹38 and ₹40 in last February. Since then, it has been on a sideways consolidation phase in a wide band between ₹38 and ₹55.

Currently, the stock tests the lower boundary with a negative bias. Conclusive downward breakthrough of ₹38 can drag it down to ₹30 and then to ₹25 in the medium term. Key resistances to note are at ₹45 and ₹55 levels.

Please provide short, medium and long term view for VA Tech Wabag, purchased at ₹498.

Nand Kishor

VA Tech Wabag (₹487.8): Ever since registering a new high at ₹970 in March 2015, the stock of VA Tech Wabag has been on a long-term downtrend. However, key support at ₹450 cushioned the stock in early November and late December 2016. The stock is in a medium-term sideways movement.

Key immediate resistances at ₹500 and ₹520 are limiting the stock's rally. You can hold it with a stop-loss at ₹440. Strong breach of ₹520 can take the stock higher to ₹550 levels.

To alter the intermediate-term downtrend, the stock needs to emphatically break the resistance level ₹550. Then the stock can trend upwards to ₹600 and then to ₹640 levels in the long term. Key support below ₹450 is at ₹410.

Send your queries to techtrail@thehindu.co.in

Send your queries to techtrail@thehindu.co.in

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