I have bought shares of Castrol India at ₹145. I don’t see the stock price moving up. Please advise.

Chandrasekaran P

Castrol India (₹123.5): This stock has been in a long-term downtrend since December 2007. This downtrend is still intact. The sluggish bounce in this stock from the March 2020 lows, when compared with the broader markets, which then recovered and surged to new highs, indicates the inherent weakness in this stock. Immediate resistance is at ₹133.

Next strong resistances are at ₹155 and ₹180. The stock will have to rise past ₹180 to become bullish and stage a fresh rally. But that looks highly impossible from the charts. Overall, the view remains bearish. The stock can fall to ₹90 again. A break below ₹90 will leave the stock in the big danger of tumbling towards ₹60 and even lower from a long-term perspective. So, it is better to exit this stock with a loss at current levels.

What is the medium- and long-term outlook for the stock of Indraprastha Gas Limited? I have bought this stock at ₹570.

Johnson P Louis

Indraprastha Gas (₹424.8): You have bought this stock almost at the top. The stock is currently witnessing a corrective fall within its overall uptrend. There is room for further fall to ₹370. A strong bounce from ₹370 will keep the broader uptrend intact. A subsequent rise past ₹500 can boost the bullish momentum. As such, the stock will then have potential to target ₹750 from a long-term perspective.

A break below ₹370 and a subsequent fall below ₹350 will bring the stock under pressure for a steeper fall to ₹280 and even ₹215. But on the charts that looks less probable. The chances are high for the broader uptrend to remain intact and see a fresh rally from near ₹370. You can buy more and accumulate the stock at ₹380. Keep a stop-loss at ₹290.

I have bought shares of Hindustan Petroleum Corporation Limited (HPCL) at ₹307. What is the outlook for this stock?

Prakash

HPCL (₹310.7): The downtrend in this stock that was in place since 2017 has got reversed. The stock has been in a good uptrend since September 2020. Immediate support is at ₹280-₹270. Resistance is at ₹350. A strong break above it can take the stock up to ₹380 initially. From a long-term perspective the stock has potential to revisit ₹500 levels in the coming months.

Only a strong break below ₹270 will bring the stock under pressure. But even then, the downside could be limited to ₹240 or ₹180, the next important supports below ₹270. Hold the stock. Assuming that you are a long-term investor, keep the stop-loss at ₹140. Accumulate more at ₹260 and ₹190 if a fall is seen from here before the expected break above ₹350 happens. Book partial profits, say, for 50 per cent of the holding at ₹490.

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