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The share price of Petronet LNG has been hovering in a wide range for many years. What is the outlook for this stock? Is it worth holding this stock? Please advise.
Vijayan Kuttiadan, Kerala
Petronet LNG (₹230.95): Barring the fall to a low of ₹155 in March 2020, Petronet LNG price has been oscillating up and down between ₹170 and ₹270 since April 2017. Within this broad range, the stock had risen to a high of ₹254 last month and then has come down from there. Support is in the ₹220-215 range. A break below ₹215 can drag Petronet LNG share price down to ₹190-180 over the next one-two months.
Looking at the price action on the charts, the short-term bias is negative. As such, the chances are high for the stock to break ₹215 and fall to ₹190-180 in the coming weeks. Broadly the sideways range is still intact. You have not mentioned your buy price. However, it is better to exit the stock at current levels, as there is no sign of a breakout happening anytime in the near future.
I have shares of NRB Bearings. My average purchase price is ₹172. What is the outlook for the next two years?
Kavitha Ramaswamy
NRB Bearings (₹261.75): The stock has been in a strong uptrend since April 2020. This uptrend has gained huge momentum since April this year. NRB Bearings made a new high of ₹293.90 last month and has come down from there. Important support is around ₹255. As long as the stock remains above ₹255, the trend will remain up. A bounce from around ₹255 can take NRB Bearings’ share price up to ₹325 over the next two-three quarters.
The uptrend will come under threat only if the stock price declines below ₹255. Only in that case, the danger of a fall to ₹200 will come into the picture. You have entered the stock at a very good level. But it is now very important for you to protect your profits. Keep a stop-loss at ₹248 and hold the stock. Move the stop-loss up to ₹278 when the price touches ₹305. Exit the shares at ₹320. In case the stock declines breaking below ₹255, make sure to adhere to the stop-loss level of ₹248 and exit.
I received shares of CreditAccess Grameen Ltd (CAGL) due to the merger of Madura Micro Finance as a swap. What is the long-term prospect for this stock? I can hold the stock for a few years, as I do not have any immediate cash requirement.
Ruben Thomas, Madurai
CAGL (₹1,394.70): The trend is up. However, the recent fall from the high around ₹1,502 will have to be watched closely, since it happened from around an important trend resistance. A key support is around ₹1,250. As long as the stock stays above this support, there is no threat for the uptrend. While above ₹1,250, there is potential for a rise towards ₹1,600. But if the stock declines below ₹1,250 from here, it can fall to ₹1,100-1,050.
Thereafter, a fresh leg of upmove can begin and target ₹1,700 over the long term. So, if you can withstand the fall to ₹1,100-1,050, then keep a stop-loss at ₹1,010 and hold the stock. Move the stop-loss up to ₹1,450 as soon as the stock moves up to ₹1,580. Move the stop-loss further up to ₹1,540, when the price touches ₹1,630. Exit at ₹1,700.
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