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.

Send your queries to techtrail@thehindu.co.in

Published on September 25, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like