Here are the answers to readers’ queries on the performance of their stock holdings.
I had bought Siemens at ₹1,400. Can you please tell about the prospects of this stock?
Vishal Salampuria
Siemens (₹1,159.9): Following an intermediate-term downtrend, the stock of Siemens found support at around ₹950 in late March this year. Subsequently, the stock reversed direction and witnessed a corrective rally.
But it encountered a key resistance at ₹1,250 in mid-April and continued to move sideways in a wide band between ₹1,000 and ₹1,250. Within this band, the stock has been in a near-term uptrend over the past few weeks. A strong break above ₹1,250 can push it northwards to ₹1,350, which is the 50 per cent fibonacci retracement level of the prior downtrend.
An emphatic break above ₹1,350 can take the stock higher to ₹1,400 and then to ₹1,450 over the medium term. But any failure to move beyond ₹1,250 will keep it range-bound for a while.
The key immediate supports are at ₹1,100 and ₹1,050. A plunge below ₹1,050 can pull the stock downwards to the lower boundary as well as the significant support at ₹1,000. A further decline below this base will strengthen the downtrend and pull the stock down to ₹950 or even to ₹900 over the medium term.
You can consider averaging the stock on declines with a long-term stop-loss at ₹980.
A strong break above ₹1,400 will alter the intermediate-term downtrend and take the stock northwards to ₹1,500 and then to ₹1,600 over the long run.
I have shares of Navin Fluorine International bought at ₹1,765. How strong is the share across time-frames?
Rohit Mallya
Navin Fluorine International (₹1,836): In October 2019, the stock broke through a key long-term resistance at ₹800, and since then, it has continued to trend upwards. Following a minor corrective decline in March this year, the stock found support at around ₹1,000 and continued to move up.
Across all-time frames, the stock is in an uptrend.
It had breached another key resistance at ₹1,650 in early July and extended the up-move. Reinforcing the bullish momentum, the stock jumped 2.8 per cent with above-average volume last Friday.
It can test an immediate resistance at ₹1,900.
A conclusive break above this barrier will take the stock higher to ₹2,000 levels over the medium term. However, a strong decline below the immediate support level of ₹1,650 will bring back initial selling interest and pull the stock down to ₹1,500. A further fall below ₹1,500 can strengthen the down-move and pull the stock lower to ₹1,400 and then to ₹1,200 over the medium term.
You can stay invested with a stop-loss at ₹1,640, and can consider booking profits if the stock fails to move beyond ₹1,900 levels.
Investors with a long-term perspective can stay invested with a stop-loss at ₹990 levels.
Send your queries to techtrail@thehindu.co.in
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.