I have shares of Bharti Airtel at an average price of ₹550. What is the outlook for this stock? Can I accumulate at current levels?
Bharti Airtel (₹722.8): This stock has been in a strong uptrend since October 2018. Within this uptrend, the stock has been consolidating between ₹635 and ₹750 barring the rise to ₹781.9 in November last year. Strong support is in the ₹640-₹620 region.
The price action since December on the monthly charts indicates that the stock is getting strong buying interest every time it falls towards ₹650. This leaves the chances high for the stock of Bharti Airtel to break above ₹750 eventually in the coming weeks. Such a break will see a fresh rally towards ₹840-₹845 in the next two-three months. There is resistance near current levels at ₹730. Inability to break above it can drag the stock lower to ₹670-₹650 again. In that case you can consider accumulating the stock at ₹670. Keep the stop-loss at ₹570. Hold it for the target of ₹830. This stock will come under pressure for a steeper fall only on a decisive break below ₹575. In that case, the stock can see a corrective fall to ₹500 and even lower.
What is the outlook for the stock of Tata Power?
Tata Power (₹231.75): After surging to an all-time high of ₹269.7 in October last year, the stock has been broadly consolidating sideways. The range of trade has been ₹200-₹260 since November 2021. A crucial long-term resistance is at ₹285. Tata Power will have to breach this hurdle to see the rally extending further. So, if you are holding this stock you have to be a little cautious.
Assuming that you have bought this stock at lower levels, consider booking profits on 40 per cent of your holding at ₹260. For the balance 60 per cent keep a stop-loss at ₹190 and hold it. If the stock is struggling to break above ₹280, then you may have to consider exiting the balance holdings as well. In case the stock breaks below ₹200, it can see a corrective fall to ₹180-₹170 initially and then even to ₹150. The 38.2 and 50 per cent Fibonacci retracement supports are poised at ₹177 and ₹148.35. Considering the strong and continuous surge since May 2020, the stock is more likely to see a corrective fall, going forward. As such, the possibility of the stock breaking above ₹285 looks less likely.
I have purchased shares of Ashoka Buildcon. My average price is ₹106. Should I hold the stock or sell it and look for some better ones?
Ashoka Buildcon (₹91.65): The broader trend since 2018 has been down for this stock. It made a high of ₹196.63 in April 2018. Since then, the stock has been coming down consistently with intermediate corrective rallies. Support for the stock is at ₹80.
As long as the stock sustains above this support, it can consolidate in the range of ₹80-₹115 for a month or two. Since the broader trend is down, the chances are high for the stock to break below ₹80. Such a break can drag it to ₹60-₹50 again. The stock will have to rise past ₹120 to become completely bullish. But that looks unlikely. So, you can consider exiting this stock with a loss and look for some alternatives to invest these sale proceeds in.
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