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Souren Dey
Wipro (₹408.65): The recent bounce from the low of ₹351.85 made in April this year is very significant. It has happened from a very crucial long-term support level of ₹350. There are very good signs on the charts indicating that the downtrend, that has been in place since January last year, has made a bottom. As seen from the charts, the stock is showing a good turnaround and the bias is bullish. It is at times like these that investors will feel like exiting the stock. But hold on.
Wipro share price can rise to ₹450 first and then to ₹520 in the coming months. This rise could be slow though. A subsequent rise past ₹520 can take the stock price up to ₹600 and ₹700 over the long term. You can accumulate at the current levels. Keep a stop-loss at ₹360. Trail the stop-loss up to ₹510 when the price moves up to ₹570. Move the stop-loss further up to ₹540 when Wipro share price touches ₹580. Exit the shares at ₹620. You will need a lot of patience to hold this stock and then exit at the mentioned level.
What is the outlook for the stock of Indus Towers? I hold its shares at an average price of ₹250. Shall I continue to hold or should I exit? Please advise.
Saranya Gosh Sinha
Indus Towers (₹173.15): The stock has been in a strong downtrend. Within that, it made low of ₹135.80 in April this year and the price has recovered from there. Though there is no sign of a trend reversal, the recent upmove has given some breather. Support is in the ₹160-170 region. As long as the stock sustains above this support, a rise to ₹210 – an important resistance, is possible. A sustained break above ₹210 is necessarily needed to take Indus Towers’ share price up to ₹270 in the coming months. The chances of this rise to ₹270 are high, but might take some time.
Also, the outlook will turn convincingly bullish only if the share price crosses above ₹270. That looks less probable at the moment. So, even if you accumulate at the current levels, you still have to watch what is happening around ₹270. You can choose from either of the two options given here. One, you can accumulate at the current levels. Keep a stop-loss at ₹135 and exit at ₹270. Second, exit with a loss at current levels and reinvest the money in some other stock that looks good on the charts. You can even consider Wipro and follow the strategy explained in the previous query.
What is the outlook for the stock of Lux Industries?
TVS Prakash Rao
Lux Industries (₹1,576.90): The stock has been in a strong downtrend since November 2021. The recent bounce from the March low of ₹1,122.60 is giving an early sign of a reversal. Support is at ₹1,410. The short-term outlook will be bullish as long as the stock stays above this support at ₹1,410. A rise to ₹1,980 and ₹2,150 can be seen over the next three months or so.
Thereafter, the stock has to necessarily sustain above ₹1,750 to keep the long-term outlook bullish to see ₹3,000 and ₹3,500 levels again. But at the moment, there is no clarity beyond ₹2,150. So, if you want to play this stock, you can do so for the short term. Buy now and accumulate at ₹1,520. Keep the stop-loss at ₹1,390. Trail the stop-loss up to ₹1,640 when the price moves up to ₹1,720. Move the stop-loss further up to ₹1,910, when Lux Industries share price touches ₹2,040. Exit at ₹2,120.
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