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What is the long-term outlook for Swan Energy? I have bought this stock at ₹608.
Pradeep Kabra
Swan Energy (₹613.55): The stock made a top of ₹782.55 by the end of February this year. Thereafter, it tumbled to a low of ₹437.80 in just two weeks by mid-March. The bounce from that low seems to be lacking strength. Swan Energy share price rose to ₹686.95 at the beginning of this month and has been coming down again. On the weekly chart, the bias is looking negative. Strong resistance is around ₹700.
The stock has to breach this level to become bullish again. Only in that case, a rise to ₹800 and higher levels can be seen. But that looks less likely. As seen from the weekly chart, the chances are looking high for Swan Energy share price to fall towards ₹460 in the coming weeks. In case the sell-off worsens, the stock can break ₹460 and tumble even to ₹350 and lower. So, it is better to exit the stock at current levels with a minimum profit.
I have shares of Kaynes Technology India. My purchase price is ₹2,715. What is the outlook for this stock? Please suggest a suitable level to exit.
Sabera begum, Gulbarga
Kaynes Technology India (₹2,725.40): The recent bounce from the low of ₹2,425 made in the middle of this month is giving a positive signal, because that bounce has happened from just above the 200-Day Moving Average (DMA) which is currently at ₹2,425. Although the weekly charts have not turned bullish, the price action on the daily chart gives a bullish bias. Immediate support is at ₹2,625. Below that the 200-DMA at ₹2,425 is the next important support. Near-term resistance is at ₹2,780. A break above it can boost the bullish momentum.
Such a break can take Kaynes Technology India share price up to ₹3,100 over the next couple of months. A further break above ₹3,100 will then clear the way for the next target of ₹3,350. Hold the stock with a stop-loss at ₹2,410. Trail the stop-loss up to ₹2,710 as soon as the stock moves up to ₹2,840. Move the stop-loss further up to ₹2,980 when the price touches ₹3,100. Exit the stock at ₹3,300. This bullish view will go wrong if the stock falls below ₹2,400. If that happens, a fall to ₹2,100 is possible.
I have shares of Orient Green Power Company at an average price of ₹2.30. What is the long-term outlook for this stock?
Vaidyanathan
Orient Green Power Company (₹20.66): The stock spiked to a high of ₹34.60 in early February this year and has come down sharply from there. Resistance is now at ₹22.80. Orient Green Power Company share price can fall to ₹17 or ₹16.5 from here. A break below ₹16.5 will see the share price tumbling to ₹13 or even ₹11 in the coming months. To negate the above-mentioned bearish view, Orient Green Power Company share price will have to make a decisive break above ₹22.8 from here itself.
If that happens, then the share price can go up to ₹30-33 again. But looking at the historical price movement, we can place high probability for the share price to decline below ₹16.5 eventually. So, you can exit the stock and book profits at current levels. May be you can consider re-entering the stock again when the price falls to ₹13 and ₹11.
Send your questions to techtrail@thehindu.co.in
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