I am having shares of Indian Energy Exchange (IEX) at an average price of ₹197. What is the technical outlook? Should I hold the stock or exit?
IEX (₹147.9): The stock has been in a strong downtrend since January this year. However, the price action since October indicates that the downtrend has halted. Important to note is that, there is a long-term trendline support at ₹132. So, the chances are high that the movement since October could be a base formation. If IEX manages to sustain above ₹132, a fresh rally to ₹175 is possible over the next six months or even earlier than that. The level of ₹175 is a strong resistance. A corrective fall from there to ₹160-₹150 is a possibility. A decisive break above ₹175 will confirm the trend reversal. That will then open doors to test ₹210-₹215 initially and then to ₹250 eventually over the long-term. Assuming that you are a long term investor, we suggest you to accumulate the stock of IEX at current levels. Keep a stop-loss at ₹125 and hold it. Move the stop-loss up to ₹165 as soon as the stock goes up to ₹190. Revise the stop-loss further up to ₹215 when IEX touches ₹230 on the upside. Exit the stock at ₹250.