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.