Comments
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?
Mohan
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?
Jayaraman
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?
S Narayanan
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.
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.