Technical Analysis

Stock query: Rallis India on strong footing

Yoganand D | Updated on June 21, 2020 Published on June 21, 2020

The stock has been on a medium-term uptrend since it took support at ₹150 in March

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

What is the short-term outlook of Rallis India? I would like to buy for a short-term horizon.

Ashish

Rallis India (₹261.5): The stock of Rallis India found support at around ₹140 in May 2019 following an intermediate-term downtrend. Thereafter, the stock started to trend upwards.

But it encountered a key resistance at ₹245 in February this year and witnessed a sharp fall.

However, the stock took support at ₹150 in March and continued to trend upwards.

It has been on a medium-term uptrend since then. While trending up, it breached the key resistance at ₹200 in early April.

Subsequently, this level turned into a key support and cushioned the stock. It decisively breached a key resistance at ₹245 in the previous week.

It trades well above the 21- and 50-day moving averages.

Both the daily and the weekly price rate of change indicators feature in the positive terrain, implying buying interest. Besides, the daily and the weekly relative strength indices (RSIs) are hovering in the bullish zone, backing the uptrend.

Though the short-term outlook is bullish for the stock, it faces a key barrier ahead at ₹280.

A strong rally above this level can push the stock northwards to ₹300 in the short to medium term. It has a key long-term resistance at ₹300.

A further break above this vital level can take the stock northwards to ₹320 and then to ₹330 in the long run.

On the other hand, a decisive slump below the key base level of ₹200 will mar the medium-term uptrend that has been in place since March.

In that case, the stock can decline to ₹180 and then to ₹160 over the medium term.

The immediate supports are at ₹245 and ₹225. You can consider buying the stock in declines with a stop-loss at ₹220.

Investors with a long-term perspective can stay invested with a stop-loss at ₹170.

Please discuss the technical details for PTC India purchased at ₹33 with a short-term investment target.

Nabeel

PTC India (₹40.8): The stock of PTC India took support at around ₹33 in March and again in late May and started to trend upwards. It has been in a near-term uptrend over the past three weeks accompanied by good volume.

The indicator and the oscillator on the daily chart feature in the positive territory, backing the uptrend. But, the stock now faces a key resistance in the band between ₹43 and ₹45.

A decisive break above this zone will take the stock northwards to ₹50 and then to ₹55 over the medium term. Inability to move beyond ₹45 will keep the stock consolidating sideways in the wide range between ₹33 and ₹45 for a while.

The immediate supports are at ₹37 and ₹35. Investors with a long-term perspective can buy the stock in declines with a fixed stop-loss at ₹35.

Send your queries to techtrail@thehindu.co.in

Published on June 21, 2020
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