What are the prospects for HUL from a short and long-term perspective?

RT Rajasekaran

Hindustan Unilever(₹921.1): This stock is going strong from both a long and short-term perspective. The uptrend that began in 2010 from the low formed at ₹218 continues to be intact.

The stock trades well above its long-term trendline that is currently poised at ₹750. Fibonacci support at ₹680 will be the next long-term support that investors need to watch out for.

But it is unlikely that the stock will be testing those levels anytime soon. Near-term support that investors with a horizon of less than a year need to watch is at ₹800.

The stock formed a low at this level in June this year. It could spend a few more months in the zone between ₹800 and ₹1,000 before attempting to move higher. Its life-time high at ₹979 will be its first target. Break above this level can take the stock to ₹1,085.

Please tell me the outlook for Jet Airways.

Namasivayam Ganesh

Jet Airways(₹400.3): Jet Airways is moving higher after forming a trough recently at ₹248. The formation of successively higher troughs in December 2011, October 2014 and now in June is a positive and shows that the long-term outlook could be turning for the better. The long-term range for the stock is between ₹160 and ₹920.

Within this range, there is immediate resistance at ₹433 and then at ₹543. If the stock is unable to move beyond these levels, it will be a cue for short-term investors to exit the stock.

Near-term supports for the stock are available at ₹315 and then at ₹248.

I hold shares of Nitin Spinners. Let me know the prospects for this scrip.

Rajajgopalan J

Nitin Spinners ( ₹87.4) : This stock was in the woods, trading below ₹20 till April 2014. But the stock has been on fire since then, recording an over four-fold increase. The vertical climb since this April from ₹27 to the June peak of ₹86 has been especially dramatic.

If you have bought the stock at lower levels and are sitting on a neat profit, it will be good to take out some money, by selling part of your holding. You can hold the rest of the stocks with stop loss at ₹74. This stock has a market capitalisation of ₹393 crore and trades only around ₹1 crore worth of shares a day. Once it starts falling, it will be difficult to offload your holding.

Nitin Spinners can fluctuate in the band between ₹75 and ₹86 for some more time before making the next move.

Currently, it tests the upper boundary level. Supports are at ₹72 and ₹63. The zone around ₹100 will be the next major hurdle, if the stock decisively breaks beyond ₹86.

I hold shares of ICICI Bank purchased at ₹310. Can I hold it for six months?

Sanjit Biswas

ICICI Bank (₹302.5): ICICI Bank has been in a serious medium-term correction since the life-time peak of ₹393 recorded in June this year. This decline is attempting to halt around the support at ₹300. But the immediate outlook is weak for the stock. It can extend the decline dragging the stock price to ₹273 or even ₹245. Long-term investors can however watch out for a buying opportunity at around ₹250.

Immediate resistances are at ₹324 and ₹350. The short-term view will turn positive only on a move above ₹350, paving the way for a rally to ₹400 or ₹433.

Send your queries to techtrail@thehindu.co.in

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