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What is the technical outlook for Asian Paints?
Kaushik
Asian Paints (₹2,984.80): The stock has been in a prolonged consolidation phase for more than two years now. The overall trend is up. The current consolidation is happening in the form of a pennant formation. Important support is around ₹2,900. Below that, the region around ₹2,700 is a very strong support. We expect the stock to sustain above ₹2,900 itself. As such, the chances are high for Asian Paints share price to go up to ₹3,500-3,600 over the next couple of quarters. A decisive break above ₹3,600 will be very bullish from a long-term perspective.
Such a break will take Asian Paints share price upto ₹4,700-4,800 over the next couple of years. Long-term investors with a minimum time-frame of two years can buy Asian Paints now. Accumulate if a dip to ₹2,800 is seen. Keep a stop-loss at ₹2,320. Trail the stop-loss up to ₹3,300 as soon as the stock moves up to ₹3,850. Move the stop-loss further up to ₹4,100 when the price touches ₹4,400. Exit the stock at ₹4,700. The bullish view could go wrong if the stock declines below ₹2,700. In that case, a fall to ₹2,400 is possible.
What is the outlook for Piramal Enterprises? Can this stock be bought at current levels? I am a long-term investor. I can hold the stock for a minimum of five years.
Pooja Sharma, Delhi
Piramal Enterprises (₹932.70): The long-term outlook is bullish. The bounce from the low of ₹630.20 made in March 2023 is very significant. It has happened from just above the 200-month moving average, which is currently around ₹638. The recent fall from the high of ₹1,140 made in September last year, is just a correction. The stock is getting support around ₹850 over the last three months. Below that, the region around ₹730 is a very strong support. Resistance is at ₹1,140. A strong break above it can take Piramal Enterprises share price up to ₹1,530 or ₹1,650 over the next couple of years.
If the stock moves up from here itself and breaks above ₹1,140, then that would form an inverted head and shoulder pattern on the charts. This will strengthen the bullish case. Long-term investors can buy Piramal Enterprises now. Accumulate on dips at ₹780. Keep a stop-loss at ₹570. Trail the stop-loss up to ₹1,120 as soon as the stock moves up to ₹1,260. Move the stop-loss further upto ₹1,310 when the price touches ₹1,380. Exit the shares at ₹1,450.
What is the three-month outlook for Shivalik Bimetal Controls?
Ashish
Shivalik Bimetal Controls (₹555.30): The stock price surged to a high of ₹730 in July last year and then witnessed a sharp fall. The price has been oscillating between ₹500 and ₹600 since August last year. The overall trend is still up. The region around ₹500 will be a very crucial support. Only a decisive break below ₹500 will indicate a trend reversal. That can drag the stock price down to ₹460 initially and then to ₹400 and lower eventually. As long as the stock sustains above ₹500, the trend will remain up.
Resistance is around ₹630. A decisive break above ₹630 will open the doors for Shivalik Bimetal Controls share price to target ₹950 on the upside from a long-term perspective. If you want to play this stock for a three-month period, then wait for dips and buy at ₹520 and ₹510. Keep a stop-loss at ₹480. Trail the stop-loss up to ₹540 when the price moves upto ₹565. Revise the stop-loss further up to ₹570 when the price touches ₹590. Exit at ₹610.
Send your questions to techtrail@thehindu.co.in
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