Technical Analysis

Stock query: Strides Pharma in a consolidation phase

Yoganand D | Updated on March 15, 2020 Published on March 15, 2020

A decisive fall below ₹340 can test the long-term support at ₹300

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

I am a long-term investor. Can you inform about the long- and medium-term prospects of Strides Pharma shares purchased at ₹497?. Shall I dispose the shares at the current rate and book losses?

S Vanaja

Strides Pharma Science (₹401): The stock of Strides Pharma Science has been in a wide sideways consolidation phase between ₹300 and ₹550 since May 2018. Within this consolidation phase, it encountered a key resistance at ₹550 in February 2020 and began to decline. The short-term trend is down.

The stock recently took a support at ₹340 and bounced up strongly, but faces a key hurdle at ₹460 and ₹475. A break above these levels can push it northwards to ₹500 and then to ₹550 in the medium term.

However, failure to move beyond ₹475 can keep the short-term downtrend intact and drag the stock lower to ₹360 and then to ₹340 once again. A decisive fall below ₹340 can test the long-term support at ₹300. You can consider averaging the stock declines with a long-term stop-loss at ₹280. An emphatic break above the crucial long-term resistance at ₹550 can take the stock higher to ₹600 and then to ₹700 over the long run.

To alter the long-term downtrend that has been in place since the stock recorded a new high at ₹1,371 in late 2015, it needs to conclusively break above ₹850 (this is a vital long-term resistance to be noted). In that case, the stock can trend upwards to ₹900 and ₹1000.

I bought shares of Siemens at ₹1,560. It has been declining continuously. Should I hold or exit?

Manish Saraogi

Siemens (₹1,212.3): The stock recorded an intra-week low at ₹1,030 and bounced up strongly. But it faces a key barrier at ₹1,310 with an immediate resistance at ₹1,250.

A decisive break above this level can pave the way for a corrective rally to ₹1,400.

The next resistance is at ₹1,450, which is a key trend-deciding level of the intermediate-term downtrend that has been in place since an all-time high of ₹1,716 registered in October 2019.

The subsequent resistance are at ₹1,500 and ₹1,600.

On the downside, a decisive plunge below the immediate support at ₹1,100 can strengthen the downtrend and pull the stock lower to ₹1,050 and then to ₹1,000 in the medium term.

You can wait and average the stock at lower levels with a stop-loss at ₹980.

Send your queries to techtrail@thehindu.co.in

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

Published on March 15, 2020
This article is closed for comments.
Please Email the Editor