Comments
I am a long-term investor and hold shares of Honeywell Automation at an average price of ₹28,162. Please give technical view on the share.
CA Rajesh Poddar
Honeywell Automation India (₹39,105.6): The stock of Honeywell Automation India has been in a medium-term downtrend since it registered a 52-week high at ₹49,805 in mid-March this year on the BSE.
But it found support at around ₹40,000 in late June and witnessed a corrective rally. This up-move met with a resistance at 44,400 in mid-July and started to decline. Since then, the stock has been in a short-term downtrend as well.
On Friday, the stock fell 2.3 per cent and closed below the key support at ₹40,000 as well as the 200-day moving average around this level. Both medium and short-term trends are down now. The daily relative strength index features in the bearish zone and the weekly RSI is charting downwards in the neutral region. Inability to move beyond ₹40,000 can drag the stock down to ₹36,750 and then to ₹35,000, which is a key long-term support level.
On the upside, a decisive move above ₹40,000 can take the stock higher to ₹41,000 and then to ₹41,500 in the near term. An emphatic break above ₹42,250 is needed to alter the short-term downtrend and bring back bullish momentum. In that case, the stock can move higher to ₹44,000 and then to ₹45,000 in the medium term. Only a strong breakthrough of resistance at ₹45,000 will alter the medium-term downtrend and pave the way for an up-move to ₹47,000 in the long run. You can consider booking partial profit at this juncture and re-enter at lower levels with a stop-loss at ₹34,900 levels. Key supports below ₹35,000 are placed at ₹32,250 and ₹31,000 levels.
I am holding IOB at ₹34. Kindly advise regarding the technical outlook for the stock.
Gopalakrishnan Sundramoorthi
Indian Overseas Bank (₹19.5): The stock of Indian Overseas Bank (IOB) has been in a short-term downtrend since it tested resistance at ₹27.5 levels. It trades well below the 21- and 50-day moving averages. However, the stock trades above a key base in the band between ₹18 and ₹19. A fall below this level can pull the stock lower to ₹17.5 and then to ₹15. A further decline below ₹15 can test supports at ₹12.5 and ₹10.
On the upside, a decisive rally above ₹23 is required to bring back bullish momentum and take the stock northwards to ₹25 and then to ₹27.5 levels. An emphatic breakthrough of the key medium-term resistance at ₹27.5 is needed to take the stock higher to ₹32 in the medium term.
Send your queries to techtrail@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.