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Here are answers to readers’ queries on the performance of their stock holdings.
I wish to buy shares of Tata Chemicals and Tata Elxsi. What is your view on these stocks.
N S Lele
Tata Chemicals (₹739): Since taking support at the key long-term base level of ₹310 in March 2016, the stock of Tata Chemicals has been on a long-term uptrend, forming higher peaks and troughs. In October 2017, the stock decisively breached a significant resistance at ₹660. Later, this turned into a key support and provided cushion in February and March.
The stock has been in a sideways consolidation phase in the broad range of ₹660-780 since October 2017. Within this band, the stock tests a resistance ₹745. A decisive rally beyond this level can take it higher to ₹780 and ₹800 in the short to medium term. But a conclusive fall below the key support level of ₹710 can pull the stock down to the lower boundary of ₹660 in the medium term. Further fall below ₹660 will strengthen the downtrend and drag the stock to ₹620 and 600 levels.
As long as the stock trades above ₹550, the long-term uptrend will remain in place. Investors with a long-term view can hold the stock with a stop-loss at ₹535 levels. A strong rally beyond ₹800 can take it up to ₹850 in the long run. You can consider buying the stock in declines with a stop-loss at ₹640 levels. Next key long-term supports below ₹550 are at ₹500 and ₹450 levels.
Tata Elxsi (₹1,233.3): The stock of Tata Elxsi is in an uptrend across all time-frames. In March, it took support at 960 and resumed its uptrend; it has been in a medium-term uptrend since then. Now, the stock tests a significant resistance at ₹1,250 levels.
A strong breach of this barrier can take the stock higher to ₹1,300 and ₹1350 in the long term. But the inability to surpass ₹1,250 can keep the stock consolidating sideways in the ₹1,135-1,250 for a while.
A downward plunge below the key support level of ₹1,100 will mitigate the medium-term uptrend and pull the stock down to ₹1,000 and ₹950 in the medium term. The long-term uptrend will be under threat only if the stock falls below the significant support band between ₹860 and ₹880. Investors with a long-term horizon can stay invested with a stop-loss at ₹840 levels. You can buy the stock in declines.
What are the short, medium, and long-term targets for Vakrangee.
Jacob Paul, Tom James
Vakrangee (₹35.7): Since recording a new high at ₹515 in January 2018, the stock has been trending downwards. Following a corrective rally in March, the stock resumed its downtrend and continues to hit lower circuits mostly.
As the stock moves from circuit to circuit, buying or selling the stock would be difficult. Overall, the outlook is bearish for the stock. However, there could be minor corrective rallies. Investors should desist from taking positions in this stock.
Send your queries to techtrail@thehindu.co.in
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