I have bought Sundaram Finance shares at ₹1,831. What is the outlook and target for this stock? Where should I keep my stop-loss?
Suhas Vaidya, Pune
Sundaram Finance (₹2,609.50): The outlook is bullish for Sundaram Finance. The stock has resumed its uptrend after a prolonged consolidation between October 2022 and April this year. All through this consolidation phase, the 21-Month Moving Average (MMA) has provided good support for the stock. This support is now at ₹2,196. Moving average cross-over on the weekly chart strengthens the bullish case. It indicates that downside can be limited in case an intermediate dip happens.
Sundaram Finance share price can rally further from here and target ₹3,450-3,500 over the next six-twelve months. Your entry level is good. It is now important for you to protect your profit. Keep a stop-loss at ₹2,380. Move the stop-loss up to ₹2,530 when the price touches ₹2,820. Revise the stop-loss further higher to ₹2,950 when Sundaram Finance share price touches ₹3,280. Exit the shares at ₹3,430.
What is the outlook for Laurus Labs? I have bought this stock around ₹414. Where should I accumulate and exit?
Laurus Labs (₹366.50): The stock is showing a sign of a turnaround. Larus Labs has been in a strong downtrend since August 2021. This fall made a low ₹279.65 in April this year. The stock has risen well from there. The price reversal has happened from just below the 61.8 per cent Fibonacci retracement support level of ₹315. The chances are looking high for the share price of Laurus Labs to move to ₹450-470 over the next couple of quarters.
Strong support is now in the ₹320-315 region. The 21-Week Moving Average (WMA) as well as the Fibonacci retracement supports are poised in this zone. That makes it a strong support zone. As such, intermediate dips are likely to be limited to the ₹320-315 support zone. You can accumulate at current levels and at ₹330. Keep a stop-loss at ₹280. Move the stop-loss up to ₹360 when the stock goes up to ₹420. Move the stop-loss further up to ₹410 when the price touches ₹440. Exit the shares at ₹460.
I had bought Insecticides India shares at ₹719. Now it is trading around ₹440. Can I continue to hold and accumulate at current levels?
Insecticides India (₹442.55): After witnessing a sharp fall in January and February this year, the stock has been consolidation sideways since March. This consolidation is happening above the 200-Week Moving Average which is currently at ₹434. Below that a trendline support is at ₹430. This consolidation indicates a bottom formation. However, it is yet to be confirmed. Resistances are at ₹515 and then at ₹540. A rise to ₹515 from here will indicate a double-bottom formation on the chart. It will strengthen the case for a reversal. A subsequent rise above ₹540 will confirm the trend reversal.
In that case, Insecticides India share price can surge towards ₹850 over the next couple of years. This view will be negated if the share price declines below ₹400. In that case, the stock can fall to ₹385 initially and then to ₹330 eventually. We prefer the stock to sustain above ₹430 and see a reversal. So you can accumulate at current levels. Keep the stop-loss at ₹380. Move the stop-loss up to ₹510 as soon as the stock moves up to ₹560. Move the stop-loss further up to ₹610 when Insecticides India share price touches ₹730. Exit the shares at ₹810.
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