What is the short-term outlook of Indostar Capital Finance Ltd?
Ghanshyam Soni, Jodhpur
Indostar Capital Finance (₹192.20): The short-term picture looks mixed, and range bound. However, the price action indicates that the stock has been getting support in the ₹180-170 region. There is support in the ₹165-160 region. So, as long as the stock trades above ₹160, there is no danger of seeing a sharp fall. A dip to ₹180 and lower levels in the near term looks possible. A bounce from anywhere in the broad ₹180-160 support zone can take Indostar Capital Finance share price up to ₹220 and ₹235 in the short term.
If you are a high-risk appetite trader and want to play the short term, then you can buy the stock on dips. Go long at ₹185. Accumulate on dips at ₹178 and ₹168. Keep a stop-loss at ₹155. Trail the stop-loss up to ₹188 as soon as the stock moves up to ₹198. Move the stop-loss further up to ₹208 when the price touches ₹218. Exit longs at ₹230. Please note that this is a short-term trade call. So, it is very important that you make sure to strictly adhere to the stop-loss and target levels mentioned above.
I have bought Blue Dart Express at ₹6,150. The stock is falling continuously. Can I buy more and average at current levels? What is the outlook?
Prashanth, Mysuru
Blue Dart Express (₹5,828.65): On the charts, the price action indicates a top formation. The price action since July 2021 indicates a huge head and shoulder reversal pattern formation. The neckline resistance of this pattern is around ₹5,900. There is also the 200-week moving average resistance above this at ₹5,985. Negative moving average cross-over on the chart strengthens the bearish case. Supports are at ₹5,400 and ₹4,900.
A break below ₹4,900 will see Blue Dart Express share price tumbling towards ₹3,600 in the coming months. Also, if the head and shoulder reversal pattern works out well, then there is a danger of this stock tumbling towards ₹2,300 over the long term. To avoid this fall, Blue Dart Express share price has to breach ₹6,000 and sustain well above it. But that looks less likely as seen from the price action on the charts. So, we suggest you to exit the stock at current levels and accept the loss.
I am holding shares of NHPC. My purchase price is ₹115. The stock has declined sharply from there. Can the stock price go back again? What is the outlook?
Deepak Rajaa
NHPC (₹85.05): You have clearly caught the stock at its top. Two important points to keep in mind always. Whenever you get attracted on a stock that has runup very sharply in a short span of time, you may have to be very cautious. As the price can fall even at a faster pace than it had risen, the risk here is very high. Secondly, whenever you enter a position, make sure to have a stop-loss and strictly adhere to it. This will help develop a discipline and avoid losses. Support for NHPC is around ₹73, which is holding well for now.
However, the share price has to go above ₹92 and sustain higher to bring back the bullishness. A strong trigger might be needed to take the share price above ₹92 from here. Else, there is a danger of the stock price declining below the support at ₹73. In that case, NHPC share price can tumble towards ₹65-64 in the coming months. We suggest you to exit the stock and accept the loss rather than waiting with a hope for the price to go up.
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