I have bought South Indian Bank shares at ₹26. What is the outlook for the next one-two years? Can I continue to hold this stock?

Proban

South Indian Bank (₹26.90): The stock has been in a downtrend since February this year. The stock touched a high of ₹36.90 and then has come down from there. A crucial support is around ₹25. A break below this support can drag the share price down to ₹21-20 in the coming months. To avoid this fall, South Indian Bank share price has to sustain above ₹25 and then rise above ₹30 in a month or two.

Only then the downside pressure will ease, and the share price can go up to ₹36-38 again. So overall, this stock is at a crucial juncture now. It is not clear from the chart whether the support at ₹25 will hold or not. So, it is better for you to exit the stock at current levels. You can consider reinvesting the sale proceeds in Borosil Renewables. Follow the strategy given in the next query.

I have shares of Borosil Renewables. My purchase price is ₹470. Please advise whether to hold or sell.

Navneeth Ummachan

Borosil Renewables (₹540.75): The long-term picture is looking bullish for Borosil Renewables. The stock seems to be forming a strong base above ₹400. Resistances are at ₹670 and ₹740. We expect the stock to breach ₹740 in the coming months. Such a break can take Borosil Renewables share price to ₹1,000 and even higher. However, this is a long-term view, and it may take a year or two to reach the above-mentioned level. So, you will need patience.

Keep the stop-loss at ₹380. Revise the stop-loss up to ₹660 when the price goes up to ₹800. Move the stop-loss further up to ₹820 when the price touches ₹990. Exit the stock at ₹1,100. Investors with a two-year time frame and who do not have this stock can also buy it at current levels. Accumulate on dips at ₹460 and follow the strategy as given above.

I am holding APL Apollo Tubes shares bought at ₹1,690. What is the long-term outlook for this stock?

Amit Kapoor

APL Apollo Tubes (₹1,480.30): This stock has been in a strong uptrend since April 2020. But the price action since September last year indicates that the rally has lost momentum. It also indicates that the stock has been struggling to get a strong follow-through rise above ₹1,700. A crucial support is at ₹1,450 and ₹1,360. The stock has to sustain above ₹1,360 to keep the uptrend alive. If a break below ₹1,360 is seen, then there is a danger of the share price tumbling towards ₹1,200-1,150, going forward.

To negate this fall, the stock has to sustain above ₹1,360 and then get a decisive rise above ₹1,700. Only then the APL Apollo Tubes share price can rise to ₹2,000 and higher levels. At the moment, charts are not giving out any strong signal. You can consider two options. One, if you have high-risk appetite, then keep a stop-loss at ₹1,340. Wait for the stock to break ₹1,700 and rally towards ₹2,000 to exit your positions. The second option is to exit at current levels and accept the loss. Our preference will be to exit now rather than waiting with a hope for a rally.

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