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I have invested in the shares of HDFC Life Insurance Company. My purchase price is ₹560. What is the outlook for this stock? Should I hold or exit?
Hari Shankar
HDFC Life Insurance Company (₹557.55): The overall trend is down since September 2021. The recent bounce from the low around ₹458 in March this year has given some relief. But there is no strong sign of a reversal. Resistances are around ₹580 and ₹600. A strong rise past ₹600 is needed to confirm a trend reversal. Such a break can take the stock up to ₹625 initially. A further break above ₹625 will open the doors to revisit ₹750-levels over the long term. But if the share price reverses lower from ₹580 or ₹600, it can fall to ₹530.
A break below ₹530 will increase the selling pressure. In that case, the stock can see a fresh fall to ₹430-420. For now, the chances are high for the stock to test ₹580 in the near term. Keep a stop-loss at ₹520. Exit 30 per cent of your holdings at ₹575. Move the stop-loss to ₹530 for the rest. If the stock turns down from ₹580 or ₹600, you can exit the balance at ₹560. On the other hand, revise the stop-loss up to ₹585, if the stock breaks above ₹600 and moves up to ₹610. Move the stop-loss further up to ₹640, when the price touches ₹710. Exit the balance at ₹740.
I have bought shares of Nazara Technologies at ₹630. What is the long-term outlook for this stock?
Shaji Titus
Nazara Technologies (₹600.20): The stock has very limited historical data to do a detailed technical analysis. However, with the available data, we will try to give the outlook here. Nazara Technologies is getting good support at ₹484-483. The stock made a low of ₹483 in March this year and has been moving up since then. There is a possible double bottom formation on the charts. Support is in the ₹555-550 region. As long as the stock stays above this support zone, the short-term outlook is bullish.
The chances are high for the stock to rise towards ₹800 over the next three-four months. Thereafter, it is important to see if a break above ₹800 is happening or not. A decisive break above ₹800 will see the stock price going up to ₹1,100 over the long term. But a pull-back from around ₹800 can drag the price back to ₹650-600. You can consider buying more at current levels. Keep a stop-loss at ₹510. Revise the stop-loss up to ₹650 as soon as the price moves up to ₹710. Move the stop-loss further up to ₹730 when stock price reaches ₹760. Exit the stock at ₹790.
I have shares of Route Mobile. My average purchase price is ₹2,350. Can I continue to hold this stock? What is the long-term view?
Debmalya Sinha
Route Mobile (₹1,399.10): There is some sign of a trend reversal visible on the charts. The stock is now poised near a very crucial resistance level of ₹1,400. The chances are looking high to break above ₹1,400. Such a break can take the stock up to ₹1,550 over the next few weeks. A decisive break above ₹1,550 will then open the doors to target ₹1,900 over the long term.
But going back to your original purchase prices is not looking likely as of now. You have bought the stock at the top. Also, even if you buy more and accumulate, you may have to wait for a long time to exit with a profit. That may not be worth the wait. So, we suggest you exit the stock with a loss at current levels.
Send your questions to techtrail@thehindu.co.in
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