I am holding the shares of Rane Brake Lining bought at ₹1,220. What is the outlook? Should I continue to hold or exit?

Swetha, Patna

Rane Brake Lining (₹893):  The stock is in a downtrend. There is room for the stock to see ₹800-₹750 in this quarter. But from a long-term perspective, the chances are high to see a bullish reversal from the ₹800-₹750 region. That leg of rally will indicate a trend reversal. It will also have the potential to take Rane Brake Lining share price up to ₹1,350-₹1,450 or even ₹1,600 by the first half next year.

If you can hold the stock for the long-term, then buy more at ₹820 and ₹770. Keep the stop-loss at ₹710. Revise the stop-loss up to ₹920 when the price goes up to ₹1,170. Move the stop-loss further up to ₹1,230 when the price touches ₹1,310. Exit the stock at ₹1,440.

I have bought shares of Colgate-Palmolive at ₹2,480. What is the technical outlook for the stock?

Immanuel, Kochi

Colgate-Palmolive (₹ 2,831.45): The share price peaked at ₹3,893 in October last year and has declined sharply. Ideally you should have had proper stop-loss strategy and exited by this time now booking some profit. Supports at ₹2,600 and ₹2,430 can be tested now. A rise to ₹3,000 is a possibility from ₹2,430. But that may or may not be a strong rise.  

Either you exit the stock now or keep a stop-loss at ₹2,640 and hold it. If you decide to hold the stock, then exit around ₹3,150. As a discipline have proper risk management strategy in place whenever you enter the stock. This will help in coming out of a position at the right time if there is a sudden volatility or a reversal.

I have bought Union Bank of India shares at ₹137. I am a long-term investor. Can I accumulate at current levels?

Debraj Sengupta

Union Bank of India (₹103.60): The stock has been in a downtrend since June last year. The sharp fall below ₹117 last week has intensified the selling pressure. The stock can fall further to ₹94 or even ₹89 in the coming weeks. But thereafter a reversal is possible.

From a long-term perspective, that leg of rally can take Union Bank of India share price up to ₹250 over the next couple of years, with intermediate corrections. Since you are a long-term investor, buy more at ₹98 and ₹91. Keep the stop-loss at ₹71. Move the stop-loss up to ₹110 when the price goes up to ₹142. Move the stop-loss further up to ₹160 when the price touches ₹195. Exit the stock at ₹230.

I have shares of SpiceJet purchased at ₹62.25. What is the outlook?

Bhaskara Murthy 

SpiceJet (₹50): The stock is facing strong resistance in the ₹75-₹80 region. The price action on the chart indicates that the bias is negative. Immediate support is at ₹49. A break below it can drag the share price down to ₹40 initially. A further break below ₹40 can see the stock tumbling towards ₹25-₹20 in the coming months.

To avoid this fall, the stock has to see a bounce immediately. Also to turn the outlook bullish, the share price has to go above ₹80. But on the charts, the possibility is looking high for a fall breaking below ₹49. So, it is better to exit the stock and accept the loss. It will not be worth the wait with just a hope for the share price to see a revival.

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Published on January 11, 2025