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What is the outlook for J.K. Cement? Shall I enter the stock at current levels?
Ashish Pathrabe
J.K. Cement (₹3,221): You have not mentioned the time frame for which you would intend to remain invested in this stock. We give here an analysis on the stock of J.K. Cement for a period of one-three months. The short-term outlook is bullish. The share price has been moving up since February this year, but very gradually. This upmove seems to have gained strength over the last couple of weeks. Support is in the ₹3,150-3,100 region. Below that, ₹3,000 is the next strong support.
J.K. Cement share price can rise to ₹3,500-3,600 over the next three months or even before that. You can buy this stock now if you want to play it for a three-month time-frame. Accumulate on dips at ₹3,160. Keep the stop-loss at ₹3,040. Trail the stop-loss up to ₹3,260 when the price rises to ₹3,330. Move the stop-loss further up to ₹3,370 when the price touches ₹3,420. Exit the share at ₹3,490. Please note that this is a very short-term outlook. So, make sure to adhere to the stop-loss and target levels.
I have purchased the shares of NMDC at ₹120. I can hold it for another six months. Can I buy more at current levels? What is the outlook?
S. Manoharan, Chennai
NMDC (₹107.60): This stock has been in a prolonged sideways move. It has been oscillating in a wide range of ₹50-150 for more than a decade since 2012. Within this range, the stock went up to ₹131.85 in January this year and has come down from there. However, the pace of fall has slowed down over the last couple of months. Support is at ₹102. If the stock manages to gain strength and move up from here, it can rise to ₹120. A sustained break above ₹120 can take it further up to ₹140.
But a break below ₹102 from here will be bearish. Such a break can drag the NMDC share price down to ₹85-80. It is not advisable to accumulate at current levels. Instead, you keep a stop-loss at ₹98 and hold the stock. Move the stop-loss up to ₹112 when the stock moves up to ₹120. Move the stop-loss further up to ₹122 when the price touches ₹130. Exit the stock at ₹135.
I have shares of Himatsingka Seide. My average purchase price is ₹241. Can I hold this stock for long term? What is the outlook?
Vikram
Himatsingka Seide (₹102.06): The downtrend that was in place since October 2021 has reversed. The stock has formed a double bottom around ₹68 earlier this year and has seen a strong rise recently. From long-term perspective, this is a strong bullish signal. The stock has supports at ₹93 and ₹80. Himatsingka Seide share price can rise to ₹130-150 over the next three-six months. Thereafter, a corrective fall to ₹100 is a possibility. But the long-term picture will remain positive.
An eventual break above ₹150 can take the stock price up to ₹220 by mid-2024. Since you intend to hold the stock for a long term, you can consider accumulating more at current levels so that your average purchase price comes down below ₹200. Keep a stop-loss at ₹84. Revise the stop-loss up to ₹95 when the price moves up to ₹120. Move the stop-loss further up to ₹150 when the price reaches ₹180. Exit the stock at ₹210.
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