I have shares of Swan Energy bought at an average price of ₹273. Please advise if I should continue to hold this stock?
Swan Energy (₹269.45): The stock has seen a strong rise over the last couple of weeks. The recent rise is very significant, as it has happened from an important support around ₹215. The 100-Week Moving Average and a long-term trendline support are poised around this level of ₹215. From a long-term perspective, Swan Energy will be bullish as long as it stays above ₹215.
A rise to ₹320 is likely in the next two-three months. A decisive break above ₹320 will boost the bullish momentum. Such a break will take Swan Energy share price up to ₹430-440 over the next one year. You can consider holding this stock for the next one year. Accumulate at current levels. Keep a stop-loss at ₹205. Trail the stop-loss up to ₹310 as soon as the stock moves up to ₹345. Move the stop-loss further up to ₹340 when Swan Energy share price touches ₹390. Exit the shares at ₹420.
I have shares of International Conveyors. My average purchase price is ₹68. Can you please give the long-term technical outlook of the stock?
International Conveyors (₹78.50): The outlook is bullish. The stock made a low of ₹40 in March this year and has risen back very well from there. This upmove is strong. Moving average cross over on the weekly chart strengthens the bullish case. Support is at ₹70. The stock has been consolidating above this support over the last few weeks. This consolidation is likely to break on the upside and the upmove can resume going forward.
International Conveyors’ share price can rise to ₹110-120 over the next three-four quarters or even earlier than that. Intermediate resistance is around ₹90. A break above it can take the stock price up to the above-mentioned targets. You can continue to hold the stock. But it is important for you to protect some profit. So, keep a stop-loss at ₹70 for now. Move the stop-loss up to ₹85 as soon as the stock moves up to ₹93. Move the stop-loss further up to ₹95 when the price touches ₹102. Exit the shares at ₹110.
I hold shares of Sterlite Technologies bought at ₹175. Please advise on what I should do with this stock.
Sterlite Technologies (₹154.05): The stock has been in a strong downtrend since January 2022. This downtrend is still intact. The stock has been consolidating sideways over the last few months. This consolidation does not look like a bottom formation. Instead, it seems to be a pause within the broader downtrend. On the charts, there is room for the stock of Sterlite Technologies to tumble further towards ₹107 and even ₹90 in the coming months.
A break below ₹140 can trigger this fall. To avoid the above-mentioned fall to ₹107 or ₹90, the stock has to see a strong break above ₹180 and then a subsequent rise past ₹200. But that looks unlikely at the moment. So, you can exit the stock with a loss. Alternatively, you can consider reinvesting the sale proceeds from this position in some other stock that looks good on the charts. Maybe you can even consider Swan Energy mentioned in the first query.
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