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

I have Orient Refractories at ₹49 and Torrent Pharma at ₹550. What are the current technical prospects? Should I hold them now?

Navendu Sharma

Orient Refractories (₹110.8): Since taking support at around ₹22 in August 2013, the stock of Orient Refractories has been on a long-term uptrend. The medium as well as short-term trends are also up for the stock. However, it faces a key long-term resistance at ₹120 and finds difficulty in surpassing this resistance level. Moreover, the daily moving convergence divergence indicator and weekly relative strength index display negative divergence, implying that trend reversal is on the cards. Hence, consider booking partial profits at this juncture.

Strong fall below the immediate support at ₹108 will be a threat to the short-term uptrend and drag the stock down to ₹98. Further slump below the significant support band of ₹95-98 will alter the medium-term uptrend and pull the stock down to ₹85 and ₹75 in the medium term.

Having said that, the long-term uptrend won't be under threat as long as the stock trades above ₹75, and the possibility of reversing higher from the ₹85 or ₹75 levels is high.

Investors with a long-term perspective can hold the stock with stop-loss at ₹70. A decisive breakthrough of ₹120 will strengthen the uptrend and take the stock northwards to ₹130 or even to ₹150 levels in the long run.

Torrent Pharmaceuticals (₹1,585.8): One leg of the long-term uptrend in the stock of Torrent Pharmaceuticals came to an end in September 2015, when it encountered a key resistance at ₹1,700. Since then, the stock has been on a consolidation phase in a wide ₹1,250-₹1,700 range. But the stock tested the upper boundary over the past two months and has failed to breach it. Last week, it fell 3 per cent witnessing selling pressure. The indicators and oscillators in the daily and weekly chart show signs of weakness. With the recent fall, the stock has breached 21 and 50-day moving averages.

The short-term outlook is bearish. You can consider taking some profits off the table and re-entering at lower levels. The stock can decline and test immediate support at ₹1,470 in the near term.

Further decline below this level can pull the stock down to ₹1,300 and then to test the lower boundary at ₹1,250 levels in the medium term. On the upside, the stock needs to decisively breakthrough the immediate resistance at ₹1,700 to reinforce the bullish momentum and accelerate to ₹1,800 and ₹1,900 levels in the long term. Investors with a long-term view can stay invested with a stop-loss at ₹1,170.

What are your views on MGL? Can I book some profit at the current price?

Anoop

Mahanagar Gas (₹789.8): The stock of Mahanagar Gas Ltd (MGL) skyrocketed 23 per cent to close at ₹520 on the listing day in early July 2016. Following an initial profit booking, the stock recorded a 52-week low at ₹493 on July 13. Since then, it has been trending upwards. Both short and medium-term trends are up. It jumped 9 per cent with good volume last week.

On Friday, the stock registered a new 52-week high at ₹802 and tests a key resistance at ₹800. The indicators in the daily and weekly chart hover in the overbought territory, implying that near-term corrective decline is on the pipeline.

Therefore, you can consider booking either partial or full profit and re-entering at lower levels. The immediate supports are placed at ₹725 and ₹690.

An emphatic slump below ₹690 can pull the stock down to ₹650 or even to ₹620 levels in the medium term. Investors and traders can make use of such declines to accumulate the stock with a stop-loss at ₹600. Strong rally beyond ₹800 can take the stock to new highs.

Send your queries to techtrail@thehindu.co.in

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