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I would like to invest in Rossari Biotech for short term. What is the technical outlook?
Ashish Pathrabe
Rossari Biotech (₹1,236.4) : The stock of Rossari Biotech has been in a long-term uptrend since it recorded a low at ₹664 in July 2020. In January 2021, it took support at around ₹820 and continued to trend upwards. Recording a 52-week high at ₹1,347.6 in early May this year, the stock started to witness selling pressure and began to trend downwards. Key resistance in the band between ₹1,300 and ₹1,350 limited the stock’s rally in June. Since then, the stock has been in a short-term downtrend. A fall below the immediate support level of ₹1,200 can pull it down to the next base level of ₹1,150 and then to ₹1,100. A further fall below ₹1,100 will strengthen the downtrend and pull the stock lower to the medium-term support level of ₹1,000. Significant supports thereafter are placed at ₹900 and ₹800 levels. As long as the stock trades above the key base level of ₹900 the long-term uptrend will remain in place. Investors with a long-term horizon can stay invested with a stop-loss at ₹850 levels.
On the upside, an emphatic breakthrough of the resistance in the band between ₹1,300 and ₹1,350 can underpin the bullish momentum and take the stock higher to ₹1,400 and then to ₹1,500 over the medium to long term. As the short-term trend is down, you can wait and buy the stock at lower levels with a fixed stop-loss at ₹980. An upward reversal from either ₹1100 or ₹1,000 can take the stock higher to ₹1,350 levels.
I have bought shares of IndiaMART InterMESH at ₹8,000. Kindly let me know the prospects.
TVS Prakash Rao
IndiaMART InterMESH (₹7,144.7) : Since marking an all-time high at ₹9,951 in the first week of February this year, when it gained 25 per cent in that week, it reversed direction and has been in a medium-term downtrend. After a corrective up-move in late April, the stock had failed to move beyond a resistance at ₹9,000 and resumed the downtrend. Short-term trend is also down for the stock. Within the downtrend, the stock has been in a narrow band over the past two months between ₹6,840 and ₹7,500. A rally above ₹7,500 can take the stock higher to ₹8,000. A further break-out of ₹8,000 can pave the way for an up-move to ₹9,000.
To alter the medium-term downtrend, the stock needs to emphatically rally above ₹9,000. In that case, it can trend northwards to ₹9,500 and ₹10,000 levels. On the downside, a fall below ₹6,700 will strengthen the downtrend and pull it down to ₹6,000 and then to ₹5,000 over the medium term. You can consider averaging the stock at lower levels with a stop-loss at ₹5,900.
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