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What is the outlook for Indus Towers? I am holding the shares at an average price of ₹280. Should I continue to hold it or exit? Please advise.
Saranya Gosh
Indus Towers (₹216.25): The short-term outlook is slightly mixed. The stock seems to be struggling to gain momentum over the last couple of weeks. Resistance is at ₹235, and support is at ₹207. There is a danger of seeing a break below ₹207. Such a break can drag it down to ₹190-185 in a month or two. A bounce thereafter can take the stock price up to ₹260 over the medium term. However, Indus Towers’ share price has to rise past ₹265 in order to become bullish for the long term.
Only in that case, the doors will open for Indus Towers stock to target ₹350-380 over the long term. Even if this happens, it might take a long time. Considering the time factor, we suggest you to exit the stock at current levels and accept the loss. You can reinvest the sale proceeds in some other stock that looks bullish on the charts. You can consider the stock Central Bank of India explained in the next query.
What is the outlook for Central Bank of India? I have bought this stock at ₹56.
S Ramanan
Central Bank of India (₹62.07): The long-term outlook is bullish. The stock has formed a strong base by forming a rounding bottom pattern between 2019 and 2023. Moving average cross-overs on the monthly chart also strengthen the bullish case. Immediate support is at ₹55. Below that, ₹44 is the next strong support. Resistance is around ₹75, which can be tested in a quarter or two. Thereafter, a corrective fall to ₹60 or ₹55 is possible.
But a fall beyond ₹55 is less likely. An eventual break above ₹75 will then open the doors for Central Bank of India share price to target ₹115 over the long term. Assuming that you are a long-term investor, keep a stop-loss at ₹48 and hold the stock. Move the stop-loss up to ₹72 when the price moves up to ₹78. Revise the stop-loss further up to ₹85 when the price touches ₹98. Exit the stock at ₹110.
I wish to buy the shares of Steel Strips Wheels. What is the outlook for this stock? Can I buy this stock at current levels?
Debmalya Sinha
Steel Strips Wheels (₹275.75): This stock has been in a very strong uptrend since 2020 with intermediate corrections in between. Within the uptrend, the stock price has been oscillating up and down between ₹244 and ₹300 since September last year. This could be a consolidation within the uptrend. The chances of it continuing for some more time is also a possibility. On the charts, support is in the ₹240-235 region. As long as the stock sustains above this support zone, the outlook will remain bullish. A rise to ₹330-340 is likely in the coming months.
Since there are chances for the consolidation to continue, we suggest you wait for dips. Buy long at ₹265 and ₹248. Keep a stop-loss at ₹220. Trail the stop-loss up to ₹290 when the price moves up to ₹310. Revise the stop-loss further up to ₹305 when the price touches ₹320. Exit at ₹330. You have to enter this trade only if you have high risk-appetite. The outlook will turn bearish if the stock breaks below ₹235. In that case, a fall to ₹190 is possible.
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