I had bought shares of Bajaj Consumer Care for an average price of ₹172.30 in December last year. The price has dropped after that. Should I buy more, or shall I exit the stock?
Dr Mallesh
Bajaj Consumer Care (₹140.65): The broader trend for this stock has been largely down since 2018. However, there is a crucial long-term trend support coming up at ₹126. It is going to be important to see if this stock is managing to hold above this support or not. A bounce from ₹126 and a subsequent rise past ₹185 can take the prices up to ₹240-250 over the next six months. A break above ₹250 will then pave way for ₹320. Such a move will indicate a double bottom formation on the chart. In that case, a break above ₹320 will be very bullish to revisit ₹500-520 over the next two years or so.
On the other hand, if Bajaj Consumer Care breaks below ₹126, it can see a steeper fall to ₹85-80 in the next two-three months. You can consider buying more at ₹133. Keep a stop-loss at ₹108 and strictly adhere to it. As the stock bounces from ₹126, trail the stop-loss up to ₹190 as soon as the stock moves up to ₹235. Move the stop-loss further up to ₹230 as soon as the stock touches ₹310. You can consider exiting 30 per cent of your holdings at ₹315. Move the stop-loss for the balance 70 per cent to ₹310, when the stock moves up to ₹380. Exit the balance holdings at ₹490.
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.