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Here are the answers to readers’ queries on the performance of their stock holdings.
I have bought UPL at ₹573. What is the outlook for the stock?
Arun
UPL (₹336): The stock of UPL has been in an intermediate-term downtrend since it encountered a key resistance at around ₹700 in July 2019. While trending down, the stock had breached a key support at ₹500 in early March 2020 and witnessed a sharp fall thereafter.
Nevertheless, the stock has been in a short-term uptrend since registering a 52-week low at ₹240 in late March.
But the stock tests a vital long-term resistance in the band between ₹360 and ₹380. An emphatic break above this band will strengthen the short-term uptrend and take the stock higher to ₹400 and then to ₹445 in the coming weeks.
A further break above ₹445 will reinforce the bullish momentum and push the stock higher to the next long-term resistance level of ₹500 in the medium term.
An emphatic break above this level will alter the medium-term downtrend and take the stock northwards to ₹550 and then to ₹600 in the long run.
You can consider averaging above ₹380 while maintaining a long-term stop-loss at ₹300.
On the other hand, if the stock plummets below the short-term support level of ₹300, it will mitigate the progressing uptrend and drag the stock lower to ₹275 and then to ₹240. Next support for the stock is at ₹200.
I hold shares of Tata Power purchased at ₹61. Now, it has reached ₹34. What is the short-, medium- and long-term view?
Saket Sharma
Tata Power Company (₹31.1): The stock of Tata Power Company is in downtrend across all-time-frames — long, medium and short term. But the stock recorded a multi-year low at ₹30 in early April 2020 and continued to trend upwards marginally. The stock now tests a key resistance at ₹37.
A strong break above this barrier will strengthen the up-move and push the stock higher to ₹42 and then to ₹46. The short-term downtrend will be altered if the stock rallies above the first resistance and the medium-term trend on a strong break above ₹52. The subsequent resistances are at ₹58 and ₹62.
On the downside, a conclusive fall below the immediate support level of ₹30 will strengthen the downtrend and pull the stock down to ₹26 and then to ₹24 in the medium term.
You can consider averaging the stock on a strong rally above ₹42 with a stop-loss at ₹34.
Send your queries to techtrail@thehindu.co.in
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