I bought National Aluminium Company (NALCO) at ₹113. What is the outlook for this stock? Can I hold it for a long time?
Angeline M Flashya
NALCO (₹115.65): The stock is hovering at its top. Historical price action indicates that every time the stock has risen past ₹120, a strong correction and a trend reversal has happened. So, you need to be little cautious at the moment. Crucial support will be at ₹100. A decisive break below ₹100 will indicate a reversal which could drag the stock down to ₹80 and even to ₹60 in the coming months. EYit 50 per cent of your holding at current levels. Keep a stop-loss at ₹96 for the rest of the holding. If you see a rise to ₹140, exit the balance 50 per cent of the holding. The region between ₹135 and ₹140 is a strong resistance which can cap the upside from here.
I have bought shares of Amara Raja Batteries at ₹637. What is the short- and long-term view for this stock?
Sajid Yoonus
Amara Raja Batteries (₹602.8): This stock has been in a strong downtrend since January last year. The stock has been consolidating sideways between ₹580 and ₹670 since December. Last week, the stock broke this range on the downside and fell to a low of ₹568.75. Though the stock has bounced-back into the sideways range, the broader view continues to remain bearish. The chances are high for the stock to see a sustained break below ₹580 again and fall to ₹520 initially. From a long-term perspective, the current downtrend has potential to target ₹430-420 on the downside. You can exit the stock at current levels with a minimum loss rather than hoping for a strong rise which looks unlikely.
I have shares of Indian Bank at an average price of ₹188. I am holding this for more than three years. How long should I wait to sell all shares at a profit?
Kandha Hari Shankar S
Indian Bank (₹152.35): This stock has formed a strong base around ₹75 in 2020 and has been gradually moving up since then. Within this upmove, the stock is stuck in between ₹130 and ₹195 since October last year. The bias is bullish. Strong support is in the ₹150-130 region. A strong rise past ₹200 will be bullish to see ₹250 levels initially on the upside. It will also keep the doors open to see ₹300-₹350 in the coming years. You have waited patiently for more than three years. So assuming that you are a long-term investor, wait for another couple of years to see levels of ₹300-350 for exiting the stock. If you have the capacity to buy more, you can accumulate at current levels. Else you can leave it as it is.
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.