Tech Query: What is the long-term outlook for Colgate-Palmolive?

I have 100 shares of Colgate-Palmolive bought at ₹1,725. I can hold it for one or two years. Should I hold it or book loss?

Nirodkumar Das

Colgate-Palmolive (₹1,600): Structurally, this stock has been in a strong uptrend since 2005. Since then, the 200-week moving average (WMA) has always provided a strong support and halted the corrective falls every time. The same pattern has been repeated with the recent correction also. The corrective fall from the high of ₹1,823, made in July last year found support from the 200-WMA in December. After consolidating above the 200-WMA and forming a strong base, the stock of Colgate-Palmolive has begun a fresh leg of rally from mid-March this year.

The overall uptrend is still intact. So, you don’t have to book loss and you can hold on to it. If you have the capacity to buy more, you can very well do so at current levels. Keep a stop-loss at ₹1,320. The stock has potential to rise towards ₹1,950 from here. Revise the stop-loss up to ₹1,670 when the stock moves above ₹1,730. Move the stop-loss further up to ₹1,770 as soon as the stock touches ₹1,860. Book profits at ₹1,950. The 200-WMA is currently at ₹1,404. Only a decisive weekly close below this level will indicate a trend reversal. In that case the stock will come under fresh selling pressure and can fall sharply.

I have bought shares of Mangalore Chemicals & Fertilizers. Can you please give me the short and medium-term outlook for this stock?

Muhammad Ramzan

Mangalore Chemicals & Fertilizers (₹124): The stock is hovering around a new high. On the chart there is a strong support at ₹105. As long as the stock sustains above this support, it can make new highs in the coming weeks.

A rise to ₹145 is possible initially in the short term. Thereafter, a corrective fall to ₹120 can be seen. The trend will continue to remain up, however. A fresh leg of rally from ₹120 can then take the stock up to ₹165 over the medium term. You have not mentioned your purchase price. However, you can stick to the strategy given below. Keep the stop-loss at ₹98 and hold the stock. Move the stop-loss up to ₹116 as soon as the stock rises to ₹143. Move the stop-loss further up to ₹145 as soon as the stock touches ₹155. Exit the stock at ₹160. The bullish outlook will get negated only on a strong fall below ₹105. In that case, the price can decline to ₹90.

I bought shares of Shree Cement Ltd a couple of months back at ₹24,700. What is the short and long-term view of this stock? Should I continue to hold it or exit at current levels?

Ganesan Viswanathan

Shree Cement (₹25,933): You have bought the stock reasonably at a better level. The stock fell to ₹21,667 earlier in March and has risen back very well from there. The 200-week moving average has halted the fall that had begun from the April 2021 high of ₹32,050. This keeps the long-term uptrend intact.

The stock can rise to ₹27,000 in the next one-two weeks. A strong break above ₹27,000 will pave the way for a further rise to ₹30,000 over the next three months. A short-lived corrective fall to ₹28,000-27,000 cannot be ruled out thereafter. But the overall trend will remain up. A fresh rise from the ₹28,000-₹27,000 region thereafter will have the potential to break ₹30,000. Such a break will see the stock surging towards ₹35,000 over the long term. Keep a stop-loss at ₹20,300 and hold it. Move the stop-loss up to ₹26,600 as soon as the stock touches ₹29,500. Revise the stop-loss further higher to ₹31,300 as soon as the stock rises to ₹32,500. Book profits at ₹35,000.

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