Comments
I have shares of South Indian Bank purchased in 2008 at ₹20. What is its technical outlook? Should I exit at current levels or hold?
Kannan M S, Madurai
South Indian Bank (₹21.68): The long-term outlook is bullish for South Indian Bank. The stock has been in an uptrend over the last three years since June 2020. This trend has gained momentum since September 2022. Significant support is in the ₹16-15.50 region. Below that ₹12.50 is the next strong support. South Indian Bank share price can target ₹33, ₹38 and then ₹45 eventually. But this may take another two years at least. You are already holding the stock for almost 15 years.
If you don’t mind holding it for another two years, you can do so. Keep a stop-loss at ₹14. Revise the stop-loss up to ₹23 as soon the price moves up to ₹27. Exit 30 per cent of your holding at ₹32. Then revise the stop-loss up to ₹26 for the balance holdings. Exit another 40 per cent at ₹35 and move the stop-loss up to ₹32. When the stock price moves up to ₹40, move the stop-loss up to ₹38. Exit the rest of the holdings at ₹42.
I have shares of TTK Prestige bought at ₹888.35, a few years ago. The stock has been underperforming for very long. Should I continue to hold the stock or book loss and buy some other stock?
Sudhir Padhye, Thane
TTK Prestige (₹739.50): The stock has been in a strong downtrend since mid-December 2021. However, since March this year, TTK Prestige’s share price has been consolidating sideways between ₹650 and ₹785. However, this consolidation is not showing any significant sign of a bottom formation. As such, for now the downtrend is still intact. Strong resistance is in the ₹820-850 region. As long as the stock trades below ₹850, the chances of witnessing another leg of fall towards ₹620-600 cannot be ruled out. In a worst-case scenario, the fall can extend even up to ₹550.
As mentioned above, a strong rise past ₹850 is needed to indicate a trend reversal and become bullish. Only in that case, the chances of revisiting ₹1,050 and ₹1,150 levels on the upside will come back into the picture. But on the charts, there is no sign of that rally happening in the near future. So it is better for you to accept the loss and exit the stock at current levels.
I have been holding the stock of Gujarat State Fertilizers & Chemicals (GSFC) over the last two years. My average purchase price is ₹97. What is the long-term outlook?
A.V. Sujit
GSFC (₹166.85): You have entered this stock at a very good level. The outlook is bullish. There is potential to see the share price rising further in the coming months. It is important for you to protect your profit. Immediate support is at ₹154. Keep a stop-loss at ₹148 for 40 per cent of your holding. For the rest, stop-loss can be placed at ₹128.
The stock has resistances at ₹180 and ₹190. Failure to breach these resistances can keep the stock in a sideways range of ₹150 and ₹190 for some time. A decisive break above ₹190 can take GSFC share price up to ₹220-225 in the coming months. When the stock moves up to ₹198, revise the stop-loss higher to ₹178 for your entire holdings. Move the stop-loss further up to ₹203 when GSFC share price touches ₹210. Exit the shares at ₹218.
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.