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I have shares of Cummins India, bought at an average price of ₹1,829. I am a long-term investor. Please suggest a target and stop-loss levels based on technical analysis.
Suhas Vaidya, Pune
Cummins India (₹3,030.55): The share price is now in an uncharted territory. The trend is up and it is very strong. There is no sign of a reversal yet. Since the stock is in uncharted territory, it is difficult to get a precise resistance and target levels. Also, unless the price turns down by itself, it is difficult to spot the reversal points as well. So, you have to continue to ride the trend. Since you are sitting in very good profit, it is important to protect it now.
Support is around ₹2,600. For the trend to turn bearish, Cummins India share price has to decline below ₹2,600. That looks less likely now. So, keep a stop-loss at ₹2,450. Move the stop-loss up to ₹2,780 when Cummins India share price goes up to ₹3,100. You can consider exiting 40 per cent of your holding at ₹3,400. Keep a stop-loss at ₹3,220 for the balance. Move the stop-loss up by ₹50 for every ₹80-rise in the share price thereafter. Continue to do this until your stop-loss is hit.
What is the outlook for the stock of Landmark Cars? I have bought this stock at ₹780. Should I continue to hold it or exit? Please advise.
Saranya Ghosh Sinha
Landmark Cars (₹795.30): The short-term outlook is bullish. The stock has been getting very good support in the ₹700-650 region since June last year. The recent rise that has been in place since last month is happening from a low of ₹675. Moving average cross overs on the daily chart also strengthen the bullish case for the short term. Cluster of supports are poised in the ₹775-730 region. Landmark Cars share price can rise to ₹900-920 over the next two-three months. The region around ₹920 is a crucial resistance. So, the price action around that level will need a very close watch.
A reversal from around ₹920 can drag the price down to ₹800-700 again. But a strong break above ₹920 will boost the bullish momentum. It can then take Landmark Cars share price up to ₹1,050. For now, keep a stop-loss at ₹685 and hold the stock. Revise the stop-loss up to ₹810 when the price goes up to ₹880. Exit 50 per cent of your holdings at ₹910 and move the stop-loss up to ₹870 for the rest of the holding. When the price touches ₹960, move the stop-loss up to ₹905. Exit the rest of the positions at ₹1,040.
I have FSN E-Commerce Ventures (Nykaa) shares. I had bought it at ₹152. I have a stop-loss of ₹148 in my mind. Where can I exit and book profits in this stock? Please guide me.
Sabera begum, Gulbarga
FSN E-Commerce Ventures (Nykaa) (₹168.50): The short-term outlook is bullish. Support is around ₹150. Immediate resistance is at ₹170. A decisive break above this resistance can boost the bullish momentum. Such a break will open the doors for FSN E-Commerce (Nykaa) share price to target ₹200 over the next two-three months. If the stock manages to breach ₹205, the upside can extend up to ₹230. Retain the stop-loss at ₹148 for now.
Move it up to ₹175 as soon as the stock moves up to ₹185. Exit 50 per cent of your holding at ₹200 and revise the stop-loss up to ₹190 for the rest of the holdings. Move the stop-loss further up to ₹210 when the price goes up to ₹218. Exit the rest of the holdings at ₹225.
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