What is your view on Tata Motors-DVR?
Jitendra K Sarawgi
In January this year, the stock breached a key long-term resistance at ₹80 and continued to accelerate, thereafter breaching another resistance at ₹100. However, it recently encountered a resistance at around ₹140 and began to correct. The stock declined 6.3 per cent last week, and has formed a bearish engulfing candlestick pattern on the weekly chart that has short-term bearish implications.
Continuation of the decline can drag the stock down to ₹113 initially and then to ₹100. As long as the stock trades above ₹100, the short-term uptrend will remain bullish.
But a strong fall below this base can pull the stock down to ₹90 and then to ₹80 levels, which is a significant long-term support to watch.
If the stock plummets below ₹80, the selling pressure will be back, and the stock can decline to ₹72 and then to ₹67 levels over the medium term. On the upside, a break above ₹140 can reinforce the bullish momentum and take the stock higher to ₹160 and then to ₹200 in the long run. Investors with a long-term view can stay invested with a stop-loss at ₹70 levels.
I bought shares of AWHCL at ₹460, but it is now falling continuously. Should I hold or sell?
Bhanuthej Bhat
Antony Waste Handling Cell (₹301.9): The stock of Antony Waste Handling Cell (AWHCL) has been trending down since its listing in early January this year.
After marking a high of ₹492.7 on the listing day (January 1, 2021), the stock began to decline. Since then, it has been on a short-term downtrend.
With the limited price history available, the stock formed a key base at ₹276 in late January. It witnessed a short-lived corrective rally thereafter. The stock encountered a resistance at ₹335 in early February; this level could act as a vital barrier now.
A strong break above this level can take the stock higher to ₹350 and then to ₹360 levels. A strong rally above ₹360 can pave the way for an upmove to ₹375.
To bring back bullish momentum, the stock needs to emphatically break above ₹375.
In that case, it can trend upwards to ₹400. Subsequent resistances are placed at ₹430 and ₹450 levels.
On the downside, a conclusive plunge below ₹276 can pull the stock down to ₹250 and then to ₹325 levels.
You can average the stock on a rally above ₹335 and exit it thereafter at around ₹400 while maintaining a fixed stop-loss.