Can you please provide the long-term technical outlook for the stock of Gulf Oil Lubricants? I have accumulated the stock for an average price of ₹700.
Gulf Oil Lubricants India (₹458.5): This stock, structurally, has been on a downtrend over the last three years. The stock made a high of ₹1,098 in December 2017 and has been falling continuously since then with intermediate corrective rallies. This downtrend is intact. Short-term resistance for the stock is in the ₹545-570 region. A strong break above ₹570 is needed to trigger a corrective rally. Even then the upside could be capped at ₹700-750 and not more than that. Some support is at ₹400. A break below this support can drag the stock down to ₹200 in the coming months. Since the trend is down and there is more room on the downside, you have to exit this stock with a loss at current levels rather than waiting for the stock to rise back.
I have bought 1200 shares of PC Jeweller at an average price of ₹120. The stock is not showing any upward momentum. What should I do now?
PC Jeweller (₹27.10): The share price of PC Jeweller has not gone anywhere. The stock price has been stuck in between ₹19 and ₹33 for more than a year now. On the charts, the chances are high for the stock to break above ₹33. But when that can happen remains uncertain. A breakout of ₹33 can result in the stock rallying to ₹40-45. A rise back to your purchase price of ₹120 and then giving a profit over and above it looks very difficult unless some strong spikes in the price rise happens. So, exit the stock.
What is the outlook for the stock of Bharat Petroleum Corporation Limited (BPCL)?
BPCL (₹398): The stock price of BPCL has been in a short-term downtrend since September last year. Though the stock has bounced over the last few weeks from the low of ₹357, the trend remains down. Strong resistance is in the ₹420-430 region which can cap the upside. The stock has potential to fall further towards ₹340 and even ₹300. However, such a fall will be a good buying opportunity. A strong bounce from anywhere in the ₹340-300 region will have the potential to take the share price up to ₹550 over the long term. If you are a long-term investor, buy 50 per cent of the intended amount at ₹345 and another 50 per cent at ₹315. Keep the stop-loss at ₹205. Trail the stop-loss up to ₹420 as soon as the stock rises to ₹485. Move the stop-loss further up to ₹470 as soon as the stock touches ₹510. Book profits at ₹530.
Send your queries to email@example.com