Technical Analysis

Tech query: SpiceJet on minor corrective mode

Yoganand D | Updated on January 09, 2021 Published on January 09, 2021

What’s the one-year outlook for the SpiceJet stock.

Prasad Vemuri

SpiceJet (₹93.8): The stock of SpiceJet broke out of a significant medium-term resistance at ₹55 in mid-November and subsequently breached a key long-term resistance at ₹60 and skyrocketed sharply, gaining 31 per cent in second week of November.

Thereafter the stock continued to trend upwards, surpassing key barriers at ₹75 and ₹90. After a blip above ₹100, the stock encountered a key resistance at ₹107 and changed direction in mid-December last year. Since then, it has been on a short-term downtrend.

The stock has now paused above a key base level of ₹90. A strong plunge below this base can pull the stock down to the next base level of ₹80 in the coming weeks. Any further fall can bring back selling pressure and pull the stock lower to the key medium-term trend-deciding level of ₹70. An emphatic plunge below this base will mar the medium-term uptrend that has been in place from the early November low of ₹48.5.Conversely, if the stock reverses higher from the crucial base level of ₹90, it can be kept in a sideways consolidation in the wide band between ₹90 and ₹110 for a while.

A conclusive break above the upper boundary of ₹110 can take the stock northwards to ₹120 over the medium-term; this level is another long term-resistance that could limit the upside. So, an emphatic breakthrough of the barrier at ₹120 is required to reinforce the bullish momentum and push the stock northwards to ₹140 and then to ₹160 over the long term. Investors with a long-term perspective can stay invested with a long-term stop-loss at ₹46 and consider accumulating the stock at lower levels. Key supports below ₹70 are placed at ₹60 and ₹55 levels.

I have bought shares of IndusInd Bank at ₹872. What is the outlook?

Bhavana Kurani

IndusInd Bank (₹939): Ever since recording a multi-year low at ₹235 in late March 2020, the stock has been on an intermediate-term uptrend. While trending up, the stock surpassed key hurdles at ₹600 and ₹800 in November in which it accelerated sharply. The medium-term trend is up. But it now tests a resistance at ₹950 that has been limiting the upside since early December 2020.

Since then, the stock has been moving sideways in the band between ₹835 and ₹950. A strong break above the current resistance can strengthen the medium-term uptrend and take it to ₹1,000. Further break above this level can pave the way for an up-move to ₹1,100 and then to ₹1,200 over the long run. Investors with a long-term horizon can stay invested with a stop-loss at ₹570. Key supports below ₹800 are at ₹750 and ₹700.

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Published on January 09, 2021
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