I am holding Geojit Financial shares at ₹65. What is the technical outlook for the stock?
Geojit Financial Services (₹84.5) : The stock of Geojit Financial Services was on a long-term downtrend after marking an all-time high at ₹147 in October 2017 until it recorded a multi-year low at ₹14.9 in March 2020. Subsequently, the stock formed a base in the band between ₹15 and ₹20 and reversed direction. Since March 2020, the stock has been in an intermediate-term uptrend, forming higher peaks and higher lows. This May the stock skyrocketed 28 per cent and conclusively breached a key long-term barrier at ₹60. Thereafter, it continued to trend upwards and last week it surpassed a key resistance at ₹80 by gaining 10 per cent. However, the stock now faces a vital long-term resistance ahead at ₹90.
An emphatic break above this level will reinforce the bullish momentum and take the stock northwards to ₹100 and then to ₹110. Thereafter resistances are placed at ₹120 and ₹140. On the other hand, if the stock declines below ₹80 it can witness a corrective decline and test next support at ₹72. But a further fall below this level will alter the short-term uptrend and pull the stock down to ₹60.You can stay invested with a stop-loss at ₹77 and can consider booking partial profit at ₹100. Vital supports below ₹60 are placed at ₹50 and ₹45. A decisive fall below the significant base level of ₹40 will alter the uptrend and pull the stock down to ₹30 levels over the long run.
Can I buy shares of Morepen Laboratories and Suven Life Sciences at current price?
Morepen Laboratories (₹70.9) : Last week, the stock of Morepen Laboratories jumped 12 per cent, breaking above a key hurdle at ₹65, and registered a new high at ₹75. If you are an investor with a high risk appetite and looking for short-term gains, consider buying the stock at current levels with a stop-loss at ₹62.
The stock can continue the long-term uptrend that has been in place from the March 2020 low of ₹7.2. While trending up, the stock exceeded a key long-term barrier at ₹40 in April 2021 and continued to trend upwards. Since then, it has been in a medium-term uptrend. A rally above ₹75 can take the stock higher to ₹80 and then to ₹90 levels. Supports below ₹60 are placed at ₹55 and ₹50.
Suven Life Sciences (₹89.7) : The stock of Suven Life Sciences has been in a medium-term downtrend since it met with a key resistance at ₹110 in May 2021. It trades well below the 21- and 50-day moving averages. A fall below the current support level of ₹87 can pull it lower to ₹80 and then to ₹76. Key medium-term support below ₹76 is at ₹70. Resistances above ₹95 are placed at ₹100 and ₹110. You can wait and buy the stock at lower levels with a stop-loss at ₹67.
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