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I have shares of Torrent Power. My average purchase price is ₹571. What is the short-term outlook for this stock?
S Jayaraman, Secundrabad
Torrent Power (₹502.75): The stock has been broadly range bound for almost two years now. The trading range since May 2021 has been ₹400-600. Within that, the stock made a high of ₹550 earlier this month and has come-off from there. The short-term outlook is mixed. Cluster of moving average supports are in the ₹495-485 region. Resistance is at ₹550. So, ₹485-550 can be a narrow trading range within the broad range. A breakout on either side of ₹485-550 will determine the next move. A break below ₹485 can drag it down to ₹450-400.
On the other hand, a break above ₹550 can take Torrent Power share price up to ₹600. A breakout on either side of ₹400-600 is needed to get clarity on the next move. A break below ₹400 will be bearish, and see ₹320-300. A strong rise past ₹600 will be needed to gain bullish momentum. Only in that case, a rise to ₹700 and higher levels will come into the picture. It is better to exit the stock with a loss. You can reinvest the sale proceeds in some other stock that has good directional clarity.
What is the outlook for Polyplex Corporation?
Farhan, Salem
Polyplex Corporation (₹1,219.85): The trend is down since April last year. This downtrend is strong and has room to fall more. A support is available at ₹1,120. A bounce from this support can be capped at ₹1,300-1,350. A rise above ₹1,350 will need some strong trigger which is not likely at the moment. So, we expect the stock to reverse lower again from around ₹1,350 and fall towards ₹1,000 and even ₹900 in the next few months.
Thereafter, we can expect the Polyplex Corporation share price to see a reversal. If you are holding this stock, exit it even if you are in a huge loss. In case you are planning to buy this stock, then wait for a fall to ₹1,000 and then enter. However, even at ₹1,000, this stock may not be a good buy because the price action on the charts looks very volatile. So it is better to stay away from this stock.
What is the outlook for the stock of Castrol India? I am holding this share at an average price of ₹108.
Rabinder S Sikand, Bangalore
Castrol India (₹108.50): The trend has been down since December 2014. The short-term outlook is also bearish. The share price of Castrol India can fall to ₹94 over the next couple of months. Thereafter, if it manages to bounce back, a move to ₹125-130 is possible. A strong rise past ₹130 will then be needed to see an extended rise to ₹145.
On the other hand, if the stock breaks below ₹94, the downside can extend up to ₹87-86. The region around ₹86 is a strong long-term base. A fall below ₹86 might be less likely. So a reversal from around ₹86 can have the potential to take the stock back to ₹130-145 again over the medium term. But that rise might take a long time, say another year or more. Considering the time factor, it is better to exit the stock with minimum loss rather that waiting for the stock to reverse higher.
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