Comments
I have purchased LIC Housing Finance in January 2021 at ₹460.15. Shall I continue to hold this stock or exit with a loss? What is the outlook?
Thiyagarajan, Pondicherry
LIC Housing Finance (₹377.60): The short-term outlook is mixed for the stock of LIC Housing Finance. Support is in the ₹320-300 region. Resistance is at ₹490-500. So, the wide range of trade could be ₹300-500. Within this, the stock has been poised around the middle of this range. It can go either way from here. From a long-term perspective, LIC Housing Finance has to rise past ₹500 to become bullish again. Only in that case, the chances of revisiting ₹700-750 levels will come back into the picture.
On the other hand, if LIC Housing Finance breaks below ₹300 it will come under more selling pressure. In that case, the stock can fall to ₹230. For now, ₹300-500 will be the broad trading range. LIC Housing Finance can oscillate inside this range for some time. A breakout on either side of ₹300 or ₹500 will then determine the next leg of move. Since the immediate outlook is not very clear, we suggest you exit the stock at current levels rather than holding it with a hope to see a rise.
Can you please give a follow-up technical call on Rail Vikas Nigam?
Rajiv Hingorani, Mumbai
Rail Vikas Nigam (₹71.55): In the bl.portfolio edition dated November 6, 2022, we had said that the stock of Rail Vikas Nigam (₹46 at that time) can rise to ₹52. But the stock had surged to a high of ₹84 within few weeks by the end of November 2022 itself. Since then, the stock price has been volatile, and range bound between ₹60 and ₹84 as seen from the monthly candles. However, on the weekly chart, the price action hints for a formation of a double-top pattern. If that is the case, then Rail Vikas Nigam can fall to ₹60-59.50 from here in the next few weeks.
A strong and sustained break below ₹59 will confirm the double-top pattern. Such a break can drag Rail Vikas Nigam to ₹45 in the next quarter or two. If you had purchased this stock at ₹46 and are still holding it, then you need to be cautious. Our suggestion will be to exit at current levels and book your profit rather than becoming greedy to see higher levels. The stock has to breach ₹84 decisively to bring back the bullish momentum. In that case a rise to ₹94-95 is possible.
I hold shares of Graphite India. What is the outlook for this stock? Can I hold or exit with loss?
Anand, Hyderabad
Graphite India (₹330.50): The trend has been down since January 2021. This downtrend is intact. Immediate support is at ₹310. A break below it can take Graphite India down to ₹285-280 in a month or two. Strong resistances are at ₹365 and ₹420. A bounce either from ₹310 itself or from around ₹285-280 will have to surpass ₹420. Only in that case, it will indicate a trend reversal and trigger a rally to ₹500-550 levels over the medium term.
But at the moment, there is no sign of a reversal. So, the rise to ₹500-550 mentioned above may take a very long time. Since you have not mentioned your purchase price, it is difficult to gauge the quantum of your loss at the moment. However, since the chances of a reversal are looking very less at the moment, we suggest you exit the stock at current levels.
Send your questions to techtrail@thehindu.co.in.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.