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I have shares of Sundaram Finance Holdings. My average price is ₹55. What is the long-term outlook for this stock?
Rabinder S. Sikand, Bengaluru
Sundaram Finance Holdings (₹146): The broader trend is up. Within that, the stock has been in a corrective fall since mid-November. There is room for the stock to fall further from the current levels. Immediate support is in the ₹135-130 region. The level of ₹125 is the next strong support. This level can be tested over the next one month or so. But thereafter, we can expect Sundaram Finance Holdings share price to resume its uptrend. A strong rise above ₹150 thereafter will confirm the same.
Such a move will have the potential to take Sundaram Finance Holding share price up to ₹210-220 over the long term. If you are a long-term investor, continue to hold the stock for at least another year. Keep a stop-loss at ₹115. Move the stop-loss up to ₹145 as soon as the price moves up to ₹170. Revise the stop-loss further higher to ₹180 when the price touches ₹205. Exit the shares at ₹220. The outlook will turn bearish only if the Sundaram Finance Holdings share price declines below ₹125.
I have purchased shares of Amara Raja Energy & Mobility at ₹670. Can I continue to hold the stock or book profits? What is the outlook for the stock?
Diya, Patna
Amara Raja Energy & Mobility (₹762): The outlook is bullish. The stock has been in a strong uptrend since July last year. Immediate support is at ₹740. Below that strong supports are at ₹680 and ₹645. In case the stock breaks below ₹740, a fall to ₹680 is possible. However, thereafter, a fresh leg of rally can begin. A possible moving average cross-over on the weekly chart also strengthens the bullish case. It indicates that the downside could be limited. Resistance is at ₹800.
A break above it can take Amara Raja Energy & Mobility share price up to ₹960 over the next one year or even earlier than that. You can continue to hold the stock. Indeed, if a fall to ₹680 happens, you can even consider accumulating the stock. Keep a stop-loss at ₹630. Revise the stop-loss higher to ₹730 when the price moves up to ₹830. Move the stop-loss further up to ₹860 when the price touches ₹910. Exit the shares at ₹940.
I have shares of SJVN. My purchase price is ₹82. What is the outlook for this stock? Can I accumulate this stock at the current levels?
Pranav Chordia
SJVN (₹89): The stock has been in a strong uptrend since March this year. Within this, there has been some wild price-swings over the last couple of months. The trend is still up. There is no sign of a trend reversal. So, you can continue to hold this stock. But considering the volatility, you need to be slightly cautious. As such, we do not recommend accumulating this stock at the current levels. Support it at ₹82.
As long as the stock sustains above this support, the trend will continue to remain up. SJVN stock price may have the potential to target ₹120 in the coming months. You can keep a stop-loss at ₹81 and hold the stock. Move the stop-loss up to ₹96 when the price moves up to ₹103. Revise the stop-loss further higher to ₹105 when SJVN share price touches ₹115. Exit the shares at ₹120.
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