Technical Analysis

Stock Query: Voltas resumes long-term uptrend

Yoganand D | Updated on January 19, 2020 Published on January 19, 2020

The medium- and short-term trends are also up for the stock

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

I have bought Voltas at ₹700. What are the prospects of the stock?

TVS Prakash Rao

Voltas (₹705): The stock of Voltas extended its rally for the third conservative week and has closed in positive territory.

With the on-going rally, the stock appears to have resumed its long-term uptrend that has been in place from the October 2018 low of ₹471. Now, the medium- as well as short-term trends are up for the stock. But it faces a crucial resistance ahead at ₹720.

A strong break above this hurdle can push it northwards to ₹740 and then to ₹760 levels in the medium term.

 

 

 

A failure to move beyond ₹720 will keep the stock consolidating sideways in a wide band between ₹650 and ₹720 for a while.

The immediate supports are at ₹680 and ₹650.

A fall below ₹680 will mar the short-term uptrend and drag the stock down to ₹650.

A further decline below ₹650 will be a threat to the medium-term uptrend and drag the stock down to ₹620 and then to ₹600 over the medium term.

The next supports below ₹600 are at ₹570 and ₹550. Investors with a long-term perspective can remain invested with a stop-loss at ₹540.

Consider booking partial if it fails to move beyond ₹720 with a stop-loss at ₹690.

Can I purchase Sudarshan Chemicals at its current price?

Pradeep K

Sudarshan Chemical Industries (₹469.1): The stock of Sudarshan Chemical Industries jumped almost 5 per cent with good volume last Friday.

This rally has reinforced the medium-term uptrend that has been in place since the August 2019 low of ₹302.

It conclusively breached a key long-term resistance at ₹415 in early January 2020, and has continued to trend upwards. The short-term trend is also up. The stock is likely to test the resistance at ₹480 in the near term.

 

 

An emphatic break above the barrier will strengthen the uptrend and take the stock northwards to ₹500 and then to ₹530 over the medium term.

The long-term targets are ₹550 and ₹585.

On the other hand, supports at ₹440 and ₹415 can provide base if any corrective decline occurs.

But a fall below ₹415 will mitigate the short-term uptrend and drag the stock initially down to ₹400 and then to ₹380 levels.

To alter the medium-term uptrend, the stock needs to fall below ₹370 level, which is a trend-deciding level.

The next supports are placed at ₹350 and ₹320.

Investors with a long-term perspective can buy the stock in corrective declines while maintaining a long-term stop-loss at ₹360.

Send your queries to techtrail@thehindu.co.in

Published on January 19, 2020
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