Your Stock Portfolio. Sadbhav Engineering on solid ground

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

What is your view on Sadbhav Engineering?

Vasu

Sadbhav Engineering (₹369.6): The stock of Sadbhav Engineering is on an uptrend across time frames — long, medium and short-term. It touched an all-time high of ₹385 on Friday. Medium-term trend will remain up as long as the stock trades above ₹300 levels.

As the stock’s indicators are featuring in the overbought zone, a shallow corrective fall cannot be ruled out.

Investors with long-term perspective can make use of such declines to buy the stock with a stop-loss at ₹190. The long-term uptrend will remain in place as long as the stock trades above the key long-term support zone between ₹200 and ₹220. Key supports below ₹300 are pegged at ₹280 and ₹250. Immediate supports are at ₹350 and ₹320, which can cushion the stock’s fall. Resumption of the uptrend can take the stock higher to ₹400 in the medium term.

Please provide long-term view for Greaves Cotton.

Aniket Naik

Greaves Cotton (₹137.4): After recording a new high at ₹159 in early January this year, the stock began to move sideways in a broad band between ₹138 and ₹160. The stock now tests the lower boundary of this sideways range. An emphatic fall can drag the stock down to ₹130 and then to ₹125 in the medium term.

A further fall below ₹125 will alter the stock’s medium-term uptrend and pull it down to ₹115 or even to ₹105 in the coming months. Having side that, an upward reversal from the lower boundary, can re-test the significant resistance at ₹160, which is the upper boundary.

Conclusive break of this level will pave way for a rally to ₹170 or ₹180 in the long run. Investors with a long-term perspective can hold the stock with a stop-loss at the level of ₹100.

Please give your short- medium- and long term target for Gillette India.

Sree Devi

Gillette India (₹4,504.3): The stock decisively broke out of its three-year long consolidation phase — between ₹1,850 and ₹2,500 — in August 2014.

It resumed its long-term uptrend. The stock jumped 20 per cent in early February breaking a key resistance at ₹3,500 and started to move sideways around ₹4,200 levels.

The stock resumed its uptrend by surging more than 10 per cent, last week, and registered a new high.

As the indicators and oscillators are weakening and showing signs of negative divergence, the stock could reverse its trend in the short term.

Investors can thus, consider booking some profits at this juncture. A fall below ₹3,900 can drag the stock down to ₹3500. A further fall can test the support level at ₹3100 in the medium to long term.

The intermediate-term uptrend will remain in place as long as the stock trades above ₹3,100.

An emphatic downward break out of this level will pave way for a decline to ₹2,800 or ₹2,500 levels. Key resistances are at ₹4,674 and ₹4,700.

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