I have bought shares of Axis Bank at ₹692. My investment horizon is one year. What is the outlook and what should be the exit target?
Axis Bank (₹751.10): Barring the spike to a high of ₹866.6 in October last year, Axis Bank has been broadly range-bound for a long time. It has been oscillating between ₹620 and ₹820 since February last year. This range is still intact. Immediate support is at ₹705. In case the stock declines below it, a fall to ₹660 and even ₹620 is possible. Since your investment time-frame is one year, the fall to ₹660 and ₹620, if seen, can be a good opportunity for you to accumulate.
Buy more at ₹665 and ₹625. Keep a stop-loss at ₹575. The stock has the potential to target ₹960-970 on a break above ₹820. Revise the stop-loss up to ₹710 as soon as the stock moves up to ₹840. Move the stop-loss further up to ₹820 when the stock touches ₹910 on the upside. Exit the stock at ₹940. The bullish outlook will get negated, and the stock will come under pressure only if it breaks below ₹600. But that looks less probable.
What is the technical outlook for the stock of Godrej Consumer Products?
Godrej Consumer Products (₹914.3): The stock has been in a strong uptrend since April this year. From a long-term perspective, the downtrend that was in place since September last year has got reversed. Supports are at ₹870 and ₹830. Much lower supports are at ₹760 and ₹730. But the downside is likely to be limited to ₹830, going forward. The 21-Week Moving Average (WMA) is on the verge of crossing over the 100-WMA. This strengthens the bullish case. It also indicates that the downside could be limited. So, as mentioned above, a fall below ₹830 is unlikely.
The stock can rise to ₹1,200 over the next one year from here. Investors with a minimum of one-year time-frame can buy this stock at current levels. Accumulate the stock on dips at ₹880 and ₹840. Keep the stop-loss at ₹710. Move the stop-loss up to ₹930 as soon as the stock moves up to ₹1,020. Move the stop-loss further up to ₹1,040 when the stock touches ₹1,120 on the upside. Exit the stock at ₹1,180.
I have bought the shares of KEC International. My purchase price is ₹298. What is the long-term outlook for this?
KEC International (₹402.6): The stock is now hovering well above your purchase price. It is now very important to lock in some profit in case any unexpected fall happens. So, keep stop-loss at ₹340 and exit the stock if a sharp fall is seen from current levels. Cluster of supports are poised in between ₹370 and ₹350. So, the chances of your stop-loss getting hit is very less.
As long as the stock sustains above the ₹370-350 support zone, the overall outlook will remain bullish. A rise to ₹550-570 is possible in the first half of next year. Revise your stop-loss up to ₹420 when the stock rallies to ₹490. Move the stop-loss further up to ₹495 when the stock touches ₹515 on the upside. Exit the stock at ₹540. The stock will come under pressure only on a decisive close below ₹350. In that case, a sharp fall to ₹280-270 is possible