Comments
Here are answers to readers’ queries on the performance of their stock holdings.
Please give the technical view on KEC International and Tata Chemicals.
Biswajit Das
KEC International (₹259.9): The Stock of KEC International breached a key long-term resistance in the range between ₹180 and ₹185 in March and continued its uptrend. Since taking support in the band between ₹100 and ₹110 in November 2016, the stock has been on an intermediate-term uptrend. This uptrend accelerated in May. After registering a new high of ₹283.5 on June 1, the stock started to decline on the back of profit-booking.
Last week, the stock fell 2.8 per cent forming a dark cloud cover candlestick pattern in the weekly chart, which is a bearish reversal pattern. Moreover, the daily and weekly relative strength indices are displaying negative divergence implying trend reversal on the cards. A fall below the immediate support level of ₹248 will weaken the short-term uptrend.
Further decline can pull the stock down to ₹200 in the medium term. But as long as the stock trade above ₹200, the intermediate-term uptrend will remain in place and the stock can reverse higher.
Next key long-term support in the placed in the range between ₹180 and ₹185. On the other hand, a decisive break above the immediate resistance at ₹270 can take the stock higher to ₹283 and then to ₹300 in the medium term. Investors with a long-term perspective can hold the stock with a stop-loss at ₹190.
Tata Chemicals (₹619.9): The stock of Tata Chemicals has been on a long-term uptrend since taking support at ₹310 in early March 2016.
Medium-term trend is also up for the stock. However, in the short-term, since early May, the stock has been on a sideways consolidation phase in the band between ₹590 and ₹660. A plunge below ₹590 can alter the sideways movement and drag the stock down to ₹550 levels in the short term. Further decline below ₹550 will mitigate the stock’s medium-term uptrend and drag it down to ₹512 and ₹500. The long-term uptrend will stay in place as long as the stock trades above the significant support zone of ₹490 and ₹500. Next key long-term support is at ₹450.
Investors with a long-term horizon can stay invested with a stop-loss at ₹480 levels and can consider accumulating the stock in declines.
Strong rally beyond ₹660 can take the stock northwards to ₹700 in the medium term.
What are the prospects of GM Breweries? I purchased it at ₹559.
Lino Mathew
GM Breweries (₹453.9): Key long-term support in the band between ₹415 and ₹430 provided base for the stock of GM Breweries in early April and late May this year. The stock surged 7.6 per cent with good volumes on Friday, conclusively breaking above the short-term down trend-line. You can average the stock with a stop-loss at ₹410. Strong rally beyond ₹485 can take the stock northwards to ₹500 and then to ₹515 in the short term.
Medium term targets are ₹550 and ₹575. But, a strong fall below the immediate support zone will alter the positive outlook and pull the stock down to ₹380 and ₹360 levels
Send your queries to techtrail@thehindu.co.in
Comments
COMMENT NOW
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.