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I have shares of InterGlobe Aviation (IndiGo) at an average price of ₹2,300. The stock has declined sharply recently due to the Omicron fear. What is the outlook for the stock now? Should I wait for a recovery or exit at current levels to avoid further loss in case the situation gets worse?
Pugazhenthi N
InterGlobe Aviation (₹1,874.5) : The stock has a crucial support at ₹1,825 which is holding for now. At the same time, resistance is at ₹2,060. The stock will have to rise past ₹2,060 to become bullish again to revisit ₹2,300-₹2,400 levels. A break below ₹1,825 will intensify the sell-off and drag the stock to ₹1,620 and even ₹1,500, going forward. You can exit one-third of your holding at current levels. Keep a stop-loss at ₹1,805 for the rest and hold it. If the stock manages to hold above ₹1,825, a sideways consolidation between ₹1,825 and ₹2,060 is a possibility.
What is the medium to long-term perspective for the stock of Tata Power?
Prakash Sharma, Saksham Neekhare
Tata Power (₹225.6) : The stock of Tata Power has been on a strong uptrend since May 2020. This rally seems to have paused recently after facing resistance in the ₹250-₹270 region. Considering the overall weakness in the market, the chances are high for the stock to see a corrective fall to ₹185-₹175 in the coming weeks. A break below ₹175 can see a steeper correction towards ₹155. The levels of ₹185 and ₹155 are trendline supports and ₹175 is the 38.2 per cent Fibonacci retracement level. Such a fall to ₹185-₹175 or even ₹155 will be a good opportunity to buy this stock again. Those holding this stock can accumulate at ₹190 and ₹165. Investors who want to enter this stock can buy 50 per cent of the total intended amount at ₹190 and another 50 per cent at ₹165.
I have 100 shares of United Spirits at ₹900. How long should I hold to get the price target of ₹1,200-₹1,250?
Eva Pareek
United Spirits (₹894.95) : The price movement of this stock has been in a strong bull channel since September 2007. Within this, the stock made an intermediate top around ₹1,020 earlier in November this year and has been coming down since then. The chances appear high for the corrective fall to extend up to ₹800-₹780. Thereafter a fresh rise to ₹1,150-₹1,200 looks possible in the first quarter of next year. You can consider accumulating the stock at ₹805 and ₹785. Keep a stop-loss at ₹665 and hold it for ₹1,150-₹1,200.
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