Technical Analysis

Siemens faces major hurdles

Yoganand D | Updated on October 06, 2019 Published on October 06, 2019

A break above ₹1,550 can push the stock up to ₹1,700 over the medium term

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

What is the long-term outlook on Siemens?

TVS Prakash Rao

 

 

 

Siemens (₹1,534): The Siemens stock has been in an intermediate-term uptrend since it took support at around ₹850 in October 2018. Medium-term trend has been up since taking support at ₹1,100 in early August this year. The shortterm trend is also up. The stock accelerated the uptrend and gained 25.8 per cent in September. Currently, it tests a key long-term resistance in the band between ₹1,500 and ₹1,550. The daily as well as the weekly relative strength indices hover in the overbought territory, implying the possibility of a potential short-term trend reversal. Profit-booking can lead to a corrective decline and the stock can slip to the immediate supports at ₹1,450 and ₹1,400. As long as the stock trades above ₹1,350, the shortterm uptrend will be intact.

A decisive fall below this level will mar the uptrend and pull the stock lower to ₹1,300 and ₹1,200 levels over the medium term. In that case, investors can consider taking partial profits off the table. Those with a long-term perspective can stay invested with a stop-loss at ₹950. Also, investors can make use of declines to accumulate the stock. A decisive break above ₹1,550 can push the stock northwards to ₹1,600 and ₹1,700 over the medium term.

What are the prospects of AXISCADES Engineering Technologies? Can I average at the current market price? Please suggest the stop-loss and entry level as well.

Pradeep Kabra

AXISCADES Engineering Technologies (₹78.6): The stock has been in a long-term downtrend ever since it encountered a resistance at ₹370 in late 2015. In May this year, the stock recorded a multi-year low at ₹44 and has been in a corrective rally since then. The stock faces a key resistance ahead in the ₹90-100 band. On the other hand, a fall below the immediate support at ₹70 will drag the stock down to ₹60, and a further fall could test the ₹50 level over the medium term. Avoid averaging the stock as long as it trades below ₹100. A strong break above ₹100 can pave way for an upmove to ₹115 and ₹130 levels.

Should I hold Garden Reach Shipbuilders & Engineers (GRSE) purchased at ₹130 or should I book profits?

Kishan Chand Swain

 

 

 

Garden Reach Shipbuilders & Engineers (₹169.8): The stock registered a new at high at ₹190 in late September and is on a corrective decline. In a volatile market, you can consider taking partial profits off the table at this juncture. A strong rally above ₹180 can take the stock northwards to ₹190 and ₹200 levels. But a slump below ₹155 can drag it down to ₹135. Vital supports below ₹135 are placed at ₹125 and ₹115 levels. A long-term uptrend remains intact above ₹135. Investors can hold the stock with a stop-loss at ₹130.

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Published on October 06, 2019
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