Technical Analysis

Tech Query: Can Subex shares go back to life-time highs?

Gurumurthy K BL Research Bureau | Updated on October 02, 2021

I have purchased the shares of Subex Ltd at ₹68. I intend to hold it for medium/long term. Please share your outlook.

S Vanaja

Subex Ltd (₹51.20): You have entered the stock at the top. The stock of Subex Ltd made a high of ₹74.4 earlier in September and has come down sharply from there. However, there is an important support coming up at ₹47. The stock will have to necessarily hold above this support to keep the overall uptrend intact. We expect this support at ₹47 to hold. A fresh bounce from ₹47 can have the potential to take the stock up to ₹80-₹85 over the medium-term. If the stock manages to sustain above ₹47 itself, then it can target even ₹100-₹110 over the long term. So, you can accumulate longs at ₹48 and wait to see a fresh rise. But in case it breaks below ₹47, a deeper fall to ₹42 can happen which, in turn, could reverse the trend. In that case you need to be a little cautious and exit at least a part (40 per cent) of your positions and hold the rest with a stop-loss at ₹39.

I have bought shares of Apollo Hospitals at an average price of ₹5,015. What is the short-term outlook for the stock?

Ghanshyam Soni

Apollo Hospitals Enterprise Ltd (₹4,460): The short-term outlook for the stock is bearish. After consolidating between ₹4,645 and ₹5,200 since the last week of August, the stock broke this range on the downside last week. This fall confirms a near-term top in place. The stock can fall to ₹4,000 and ₹3,800 from here in the next one-two months. The chance of getting any intermediate bounce is also looking bleak, considering the sharp fall last week. Even if it is seen, the upside will be capped at ₹4,700-₹4,750. It is advisable to exit the stock at current levels and book loss. However, you can wait to buy the stock again near ₹4,050 and accumulate at ₹3,850 again. A break below ₹3,800 looks less likely. We can expect the stock to see a bounce anywhere from the ₹4,000-₹3,800-support zone. Such a bounce will keep the broader uptrend that has been in place since April last year. In that case, the stock can target ₹5,000 levels again over the long term. As such, your holding period will have to be long term in case you intend to buy the stock again on dips at levels mentioned above.

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Published on October 02, 2021

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