Comments
What is the long-term outlook for Piramal Enterprises Ltd? Is this the right time to buy this stock?
Farhan, Salem
Piramal Enterprises (₹994.55): The long-term outlook is bullish for Piramal Enterprises. The rise from the March low of ₹630 gives a clear indication of a trend reversal. This upmove has been very strong as seen from the monthly candles. Also, this reversal has happened from just above the 200-Month Moving Average (MA). In addition to this, MA cross-overs in the weekly chart strengthens the bullish case.
Piramal Enterprises’ share price can surge to ₹1,500-1,550 over the next couple of years. Clusters of support are there in the ₹850-780 region. Buy this stock at the current levels. Accumulate on dips at ₹880. Keep a stop-loss at ₹680. Trail the stop-loss up to ₹1,080, when the price moves up to ₹1,240. Move the stop-loss further up to ₹1,340 when Piramal Enterprises’ share price touches ₹1,410. Exit the shares at ₹1,480.
I want to buy shares of Relaxo Footwears. What is the outlook for this stock? Please suggest a good level to enter this stock?
Sabera Begum
Relaxo Footwears (₹921.25): The stock has been in a strong downtrend since November 2021. This fall halted around ₹749 in March this year. Since then, the stock has been moving up. This upmove gives a signal of a trend reversal. However, a strong confirmation is still not visible on the charts. Important support is around ₹860. As long as the stock trades above this support, the bias is positive. Resistance is around ₹950. A decisive rise past this hurdle will strengthen the case of a trend reversal. Such a break can take the stock price up to ₹1,000-1,100 initially.
A sustained rise past ₹1,100 will then boost the bullish momentum and take Relaxo Footwears’ stock price up to ₹1,300-1,400 levels again. If you want to hold this stock for one year, then you can buy now. Accumulate on dips at ₹880. Keep the stop-loss at ₹770. Trail the stop-loss up to ₹970, when the price touches ₹1,060. Move the stop-loss further up to ₹1,080, when Relaxo Footwears’ stock price touches ₹1,160. Exit the stock at ₹1,230.
I have purchased shares of Valiant Organics at ₹505. What is the outlook for this stock?
Vipul, Mumbai
Valiant Organics (₹508.40): The stock has been in a strong downtrend since May 2021. Although the stock has been rising since the last week of March, the upmove is not showing strength. The stock is now poised at a crucial juncture. An important support is at ₹495. The stock has to sustain above this support and then subsequently move above ₹600 to turn the outlook convincingly bullish. In that case, a rise to ₹800-900 is possible in the next two-three quarters.
But if the stock breaks below ₹495, it can fall to ₹430-400. Keep a stop-loss at ₹485 and hold the stock. If the stock breaks below ₹495, then exit at the mentioned stop-loss level. On the other hand, if the stock sustains above ₹495 and moves up from here, then follow the given strategy. Revise the stop-loss higher to ₹520 when the price moves up to ₹560. Move the stop-loss further up to ₹620, when Valiant Organics’ share price touches ₹680. Exit the shares at ₹760.
Send your questions 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.