I started investing in stocks a year ago, after my retirement. I have bought shares of Tata Steel at ₹122. What is the outlook?
Tata Steel (₹120.65): Firstly, equities are high-risk avenue for retired people. So we suggest you to have minimum exposure to stocks and be very cautious. Coming to your question, Tata Steel has been in a strong downtrend since August 2021. On the weekly chart, there are some signs of a trend reversal. But on the monthly chart, the confirmation is yet to come. Cluster of supports are poised in the broad ₹115-100 region. So, the stock will come under pressure only if it falls below ₹100.
As long as Tata Steel sustains above ₹100, the outlook is bullish to see ₹150 in the second half of this year. If your risk-appetite permits, then keep a stop-loss at ₹95 and hold it. Move the stop-loss up to ₹128 as soon as Tata Steel moves up to ₹135. Move the stop-loss further up to ₹138 when the stock touches ₹145 on the upside. Exit Tata Steel at ₹150. If Tata Steel declines below ₹100, it will be very bearish. In that case, Tata Steel share price can fall to ₹80.
I hold Ramkrishna Forgings at an average price of ₹110. If the stock is making a top and there isn’t much room on the upside from the current levels, then I can exit it and look for some other stock.
Ramkrishna Forgings (₹262.50): The long-term trend is up for the stock. However, the weekly candles indicate the chances that a top could be in place. Support is in the ₹255-250 region. A break below ₹250 will confirm the top. Such a break can drag Ramkrishna Forgings down to ₹225 in the short term. The chances of the fall extending up to ₹210 also cannot be ruled out.
You can exit 40 per cent of your holdings at current levels. Keep a stop-loss at ₹245 for the balance 60 per cent holding and exit them if a break below ₹250 is seen. In case the stock manages to sustain above ₹250 and spikes to ₹275-280 again, then consider exiting your rest of the holdings at ₹270.
I have shares of Info Edge (India). My average purchase price is ₹4,230. My investment horizon is two years. What is the outlook for this stock? Can I hold it or exit now with a loss?
Info Edge (India) (₹3,644.85): The stock has been in a strong downtrend since October 2021 and is still intact. There is no sign of a bottom yet. Info Edge (India) has room to fall to ₹3,450 in the short-term. A strong break below ₹3,450 can increase the downside pressure on the stock. Such a break can see the prices tumbling to ₹2,850-2,800 in the coming months.
Strong resistance is at ₹4,100 and then around ₹4,400. The stock has to rise past ₹4,400 decisively to indicate a trend reversal and become bullish. Only in that case, Info Edge (India) can rise back to ₹5,000 and higher levels. But such a strong rally is unlikely as seen from the price action on the chart. So, we suggest you exit the stock at current levels with a loss.
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