I have purchased shares of Adani Enterprises at an average price of ₹2,733. What is the outlook for this share? I can wait for more time to avoid losses.
Adani Enterprises (₹1,314.75): The stock price had tumbled about 68 per cent from its December high of ₹4,190. On the charts, the picture is very weak. Although the stock bounced back from the low of ₹1,017, it failed to sustain higher. The fall again from around ₹2,200 indicates the presence of fresh sellers at higher levels and also the resumption of the overall downtrend. So, this keeps the downtrend intact. As such, although there are supports around ₹1,200 and ₹1,050, the chances are less for them to halt the current fall.
So, we suggest you accept the loss and exit the stock at current levels. From a bigger picture perspective, a strong support is available only in the ₹650-600 region. As such, we will not be surprised to see the Adani Enterprises stock’s prices tumbling below ₹1,000, targeting ₹650-600 in the coming months. Strong resistances are at ₹1,900 and then at ₹2,200. To avoid the fall to ₹650-600, the stock has to see a sustained rise above ₹2,200 to indicate a trend reversal. Only in that case, the share price can rise to ₹2,500-2,700 and even higher levels.
I have purchased shares of SRF at ₹2,560. What is the outlook for the next six months and one year? Can I hold the stock or exit at current levels?
SRF (₹2,223): The share price of SRF has been in a long-term uptrend since 2018. Within this uptrend, the stock has been in a prolonged sideways range since September 2021. The overall trend is still up. Cluster of supports are poised in between ₹2,100 and ₹2,000. This makes ₹2,100-2,000 a strong support zone. As such, a break below ₹2,000 might not be easy. As long as the SRF share prices sustain above ₹2,000, the trend will remain up. We expect the share price to move up towards ₹3,000 over the next three-four quarters.
From a long-term perspective, the stock has potential to target ₹3,400 as well. So, you can consider accumulating the stock at current levels. Keep a stop-loss at ₹1,940. Move the stop-loss up to ₹2,550 as soon as the stock moves up to ₹2,850. Move the stop-loss further up to ₹3,000 when the share prices touch ₹3,150. Exit at ₹3,300. The outlook will turn bearish only if the stock breaks below ₹2,000. In that case, SRF share price can fall to ₹1,600-1,550.
I have shares of India Cements bought at ₹193. What is the short- and long-term outlook for the stock?
India Cements (₹188.90): The stock has been in a downtrend since October last year. There is room for the price to fall further from the current levels. Support is in the ₹170-165 region which can be tested in the next one-two months. But thereafter, the stock price can reverse higher. Such a reversal will keep the long-term uptrend intact. The fresh rally from around ₹170 can target ₹290-300 either by this year-end itself or in the first half of 2024.
A break above ₹300 will see the upside extending up to ₹320. If you are a long-term investor, consider buying more at ₹175. Keep a stop-loss at ₹140. Move the stop-loss up to ₹210 as soon as the stock rises to ₹270. Move the stop-loss further up to ₹265 when India Cements share price touches ₹295. Exit the stock at ₹310.
Send your questions to email@example.com