Here are answers to readers’ queries on the performance of their stock holdings.

I hold Titan Company at ₹360. What is the short, medium and long-term outlook for the stock?

Gopal Setty

Titan Company (₹348): The stock of Titan Company met with a key resistance at ₹390 in late November after retracing 61.8 per cent fibonacci retracement level of its prior downtrend. It subsequently changed direction and started to decline. Since then, the stock has been on a short-term downtrend.

Currently, it is poised at a key medium-term trend-deciding level of ₹340. A decisive fall below ₹340 can drag the stock down to the key long-term support zone between ₹300 and ₹310 in the coming weeks.

But an upward reversal from the current level can take it higher to ₹365 and ₹390 in the medium term. Nevertheless, to alter the intermediate-term downtrend, the stock needs to emphatically break through the crucial resistance level of ₹390.

This will strengthen the stock’s long-term uptrend and take it up to ₹415 or ₹440 in the long run.

Investors with a long-term perspective can average the stock at lower level around ₹300 with a stop-loss at ₹285.

Inability to break through and rally above the resistance level of ₹390 will be a cue for taking profits off the table at that juncture.

On the other hand, a decisive fall below the key base at ₹300 can pull the stock down to next supports at ₹265 and ₹250 levels.

I hold Amara Raja Batteries bought at ₹1,000 per share. At what price should I buy to average the stock?

Sree Devi

Amara Raja Batteries (₹844): The stock of Amara Raja Batteries recorded an all-time high at ₹1,132 in August 2015. Thereafter, it changed direction triggered by negative divergence in the relative strength index.

Since then, the stock has been on a medium-term downtrend. Short-term trend is also down.

However, the stock has a significant long-term support at around ₹800, which also coincides with 38.2 per cent Fibonacci retracement level of the stock's prior up leg. The stock trades well below its 50 and 200-day moving averages.

You can wait and watch for the stock to rebound up from ₹800 and then consider averaging the stock with a stop-loss at ₹750.

A strong upward reversal from ₹800 can signal bullish momentum and take the stock up to ₹900 initially and then to ₹1,000 in the medium term.

But a conclusive plunge below ₹800 will have bearish implications and drag the stock to ₹720 or ₹700 levels in the medium term. Targets are ₹1,050 and ₹1,130 levels.

What is the entry level for long-term investment in IDFC Bank, which has, of late, been going down?

Brij Mohan Lal

IDFC Bank (₹55): The stock of IDFC Bank was listed in early November 2015. Since then, the stock has been on a medium-term downtrend.

Moreover, short-term trend is also down from the December 2015 peak of ₹62. There is only little history for the stock therefore envisaging beyond these levels for a long-term perspective will be difficult at this juncture. Immediate support is at ₹54. A strong fall below this level can drag the stock down to the psychological support level of ₹50. Immediate key resistance is at ₹57.5 and the next is at ₹59. To alter the short-term downtrend, the stock needs to rally beyond ₹59. Such a rally can take it higher to ₹62. But, to change the medium-term downtrend, the stock has to emphatically break the key resistance level of ₹64. Targets are at ₹69 and ₹73 levels.

Send your queries to techtrail@thehindu.co.in

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