Technical Analysis

Tech Query: Should I enter Quess Corp counter at current levels?

Gurumurthy K BL Research Bureau | Updated on September 25, 2021

I would like to invest in Quess Corp Ltd. Please let me know the prospects of the company.

Pradeep Kabra

Quess Corp Ltd (₹916): The stock of Quess Corp Ltd is in a strong uptrend. However, the price action on the daily chart indicates that a near-term top is being formed. The stock has failed to break above the key medium-term trend resistance level of ₹980 and is turning down. There’s good chance to see a corrective fall towards ₹900 and ₹870-₹860 in the next one or two weeks. So, you can wait for dips and buy the stock at ₹900 initially. Accumulate more at ₹880 if the stock falls below ₹900 and extends the corrective fall towards ₹870-₹860.

For now, a break below ₹860 looks less likely. A sideways consolidation between ₹860 and ₹1,000 is also a possibility. An eventual break above ₹1,000 can take the stock up to ₹1,220 over the next two-three months. You can book partial profits, say, for 30 per cent of your holding at ₹1,220 and run the rest of the position with a trailing stop-loss at ₹970. In case the stock falls below ₹860 now, the downside can extend up to ₹820. Assuming that you are a long-term investor you can accumulate more near ₹840-₹830. Keep the stop-loss as ₹730 and hold on to it. The trend will remain up as long as the stock stays above ₹820.

I would like to invest in IPCA Labs for the short term. What is the technical outlook for the stock?

Ashish Pathrabe

IPCA Labs (₹2,405): The stock price of IPCA Labs has come off sharply over the last couple of weeks. The stock made a high of ₹2,766.2 on September 15 and is down 13 per cent from there. There is room to see a further fall towards ₹2,250 and even ₹2,150 in the next one or two months. The level of ₹2,150 is a strong trend line support and a break below it will not be easy. Wait for it and start buying the stock at ₹2,260. Accumulate at ₹2,200 and ₹2,170 if the stock extends the fall below ₹2,250. We can expect it to reverse higher again anywhere from the ₹2,250-₹2,150 region. A fresh leg of rally thereafter will have the potential to take the stock up to ₹3,300-₹3,400 in the coming months. Have a stop-loss at ₹2,040 and hold the stock.

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Published on September 25, 2021

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