Technical Analysis

Tech Query: Should I hold Karur Vysya Bank?

Gurumurthy K | | | Updated on: Jan 08, 2022
Kochi, Kerala, 23/08/2013: In the offing - It is a matter of days before the supply of regasified LNG to industrial consumers begins from the Petronet LNG terminal at Puthuvype. Photo: Vipin Chandran

Kochi, Kerala, 23/08/2013: In the offing - It is a matter of days before the supply of regasified LNG to industrial consumers begins from the Petronet LNG terminal at Puthuvype. Photo: Vipin Chandran

I have accumulated the shares of Karur Vysya Bank from ₹120 to ₹29. My average cost per share is ₹58. I can hold it for long time. Please let me know the outlook for this stock.

CV Shashidhar

Karur Vysya Bank (₹46.45): The long-term downtrend in this stock has ended. However, the stock seems to lack strength for a sharp recovery. Since you have accumulated this stock all the way from its top to the bottom of that downtrend, you will have to wait patiently to reap the complete benefit of accumulation.

Support is in the ₹43-38 region and the chances are high for the stock to sustain above it. We can see a rise back to ₹60-64 in the coming months. Thereafter, an eventual break above ₹65 can take the stock up to ₹75 and ₹90 over the long-term. If you have the capacity to accumulate more at current levels, you can do so. Keep a stop-loss at ₹32 and hold the stock for the long-term targets of ₹75 and ₹90.

What is the long-term technical outlook for the stock of BEML. What is the appropriate level to enter this stock and what can be the stop-loss?

Giri Raj

BEML (₹1,824.7): The stock is in a strong uptrend. Very good support is in the ₹1,600-1,550 region and BEML is more likely to sustain above it. Immediate resistance is at ₹2,180-2,220. A strong break above it can take it up to ₹2,600-2,620 in the coming months. The level of ₹1,280 is the crucial support below ₹1,550.

The stock must fall below ₹1,280 to become bearish. But that looks less likely now. You can buy 50 per cent of the intended amount at current levels. Accumulate for another 30 per cent on dips at ₹1,630.

Considering you are a long-term investor, keep a wider stop-loss at ₹1,130. In case if the stock breaks below ₹1,550, buy the balance 20 per cent at ₹1,230. Trail the stop-loss up to ₹1,940 as soon as the stock moves up to ₹2,320. Move the stop-loss further up to ₹2,340 when the stock price reaches ₹2,490. Book profits at ₹2,600.

I bought 260 shares of Graphite India at an average price of ₹551 and 400 shares of Phillips Carbon Black at ₹241. What is the medium-term outlook for these stocks?

Ankush Hans

Graphite India (₹507.85): This stock has been in a strong downtrend. The strong bounce seen towards the end of last year is just a corrective bounce. The stock has to rise past ₹542 to move further up towards ₹580 and ₹620. As long as the stock stays below ₹542, the stock is more likely to come down towards ₹450-400 again.

Though there is a chance for seeing ₹580, considering the broader downtrend, it is better to exit the stock at current levels with a loss rather than hoping for a rise.

Phillips Carbon Black (₹236.75): The stock has been in a strong uptrend since April 2020. Support is in the ₹215-200 region. As long as the stock stays above ₹200, chances are high for it to rise towards ₹300-315. Resistance is at ₹280.

A break above it can trigger the rise to ₹300-315. Hold the stock with a stop-loss at ₹180. You can consider accumulating on dips at ₹220. Move the stop-loss up to ₹275 as soon as the stock touches ₹290. Book profits at ₹310.

What is the medium and long-term outlook for the stocks Mahanagar Gas and Petronet LNG? I bought them at ₹1,025 and ₹225, respectively.

S Sankaran

Petronet LNG (₹221.8): The stock has been consolidating sideways between ₹180 and ₹280 for several years now. However, structurally the stock has been in an uptrend which is still intact. As such, though it might take some more time, chances are high for it to break above ₹280 in the coming months. Such a break can take the stock up to ₹350-360 eventually. Keep a stop-loss at ₹160 and hold the stock for the target of ₹350.

Mahanagar Gas (₹884.15): The stock has been in a broad sideways range of ₹740-1,300 for a prolonged period and has been an under performer. It is now coming down towards the lower end of this range. If you can wait for a long time, you can consider accumulating at ₹780. Keep the stop-loss at ₹720. Exit at ₹1,200.

Alternatively, you can also consider exiting the stock with a loss at current levels and use that money to accumulate more of Petronet LNG as the outlook for that stock looks evidently more bullish than Mahanagar Gas.

Send your queries to techtrail@thehindu.co.in

Published on January 10, 2022

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