Technical Analysis

Stock query: Natco Pharma on medium-term uptrend

Yoganand D | Updated on October 04, 2020

But the stock faces a significant resistance ahead at ₹1,000

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

I hold shares of Natco Pharma. What is the outlook for the stock for the short, medium and long terms?

Sarvesh Goel

Natco Pharma (₹939.2): The stock of Natco Pharma has been on an intermediate-term uptrend since registering a 52-week low at ₹450 in late March this year. While trending up, the stock decisively breached a key long-term resistance at ₹700 in late July and continued to trend northwards.

Both the medium- and short-term trends are up for the stock.

The stock trades well above its 50- and 200-day moving averages. That said, it faces a significant long-term resistance ahead at ₹1,000, which is also a psychological level to note.

A strong break above this level can pave the way for an upmove to ₹1,100 and then to ₹1,200 over the medium term.

Key medium-term resistances above these barriers are pegged at ₹1,350 and ₹1,500 levels.

But failure to move beyond ₹1,000 can witness a sideways corrective phase in the band between ₹900 and ₹1,000.

A slump below the immediate support level of ₹900 can drag the stock down to ₹800 over the short term.

A strong fall below ₹800 will alter the medium-term uptrend and pull the stock lower to ₹740 and then to ₹700.

As long as the stock trades above ₹700, the intermediate-term uptrend will remain intact.

Investors with a long-term perspective can stay invested with a long-term stop-loss at ₹660.

I am a long-term investor and have been holding shares of Eros Media for the past two years. What is the future prospect of the stock?

Jyotiprakash M

Eros International Media (₹21.5): Across all-time frames — short, medium and long term — the stock of Eros International Media is on a downtrend. Since recording a multi-year low at ₹7.17 in late March, the stock has been on a corrective phase in which it rallied to ₹30.4 — a 52-week high marked in late August this year — and declined to ₹20.

Currently, the stock trades above the base level of ₹20 with a negative bias.

A fall below this level can drag the stock lower to ₹17.5 and then to ₹15 over the medium term.

The next supports are at ₹13 and ₹10.

On the other hand, a decisive rally above the near-term resistance levels of ₹25 and ₹30 can take the stock higher to ₹40 and then to ₹50 over the long run.

You can consider exiting the stock on rallies.

Send your queries to

Published on October 04, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor